Hello, everyone, and thank you for joining our first half 2026 results call. Here with us today, we have the Group CEO, Philippe Donnet; the Deputy Group CEO, Giulio Terzariol; the Group General Manager, Marco Sesana; and the Group CFO, Cristiano Borean.

Before opening for Q&A, let me hand over to Philippe for some opening remarks.

Thank you, Fabio, and thanks to all of you for joining this call. Generali's excellent financial results for the first half of 2026 demonstrate the strength, profitability, and very solid capital position of our group once again.

We have now reached the halfway mark in the execution of Lifetime Partner 27: Driving Excellence, and these results reinforce our confidence in our ability to successfully deliver our fourth strategic plan in a row. I am going to focus on five key messages.

First, we recorded a strong performance across all key metrics thanks to the robust contribution of every business segment. Gross written premium reached €53.4 billion, up 5.8% from half-year 2025, driven by both life and property casualty.

The operating result achieved excellent growth to €4.5 billion, up 11.2%, again thanks to all business segments. This led to a 13.7% progress in the adjusted net result to €2.5 billion, leading to an adjusted earnings per share growth of 14.3%.

Thanks to our sound capital generation, we close the second quarter with a very solid Solvency II ratio at 216%, notwithstanding the impact of the €500 million buyback and the end of the subordinated bond grandfathering regime. Second, our life business maintained a very positive growth trajectory with the operating result increase to €2.2 billion, up 8.8%.

Net inflows were very strong, exceeding €8.3 billion. This is a record first-half figure achieved thanks to the positive contribution from all business lines.

New business value grew significantly by 21.1%, reaching €1.9 billion, benefiting from both higher volumes and improved overall profitability. Our new business margin expanded materially to 5.86%, mainly thanks to the positive impact of a more favorable new business mix and enhanced product features.

Third, the property and casualty operating result rose by 4.7% to over €2.1 billion. This was achieved despite an additional [core?]

€425 million in both natural catastrophe and man-made claims compared with the first half of 2025. The combined ratio stood at 91.5% from 91% at half-year 2025, with a 3.6 percentage point impact from NatCat.

The natural catastrophes we witnessed this year, including the recent severe wildfires in Spain and France, further highlight the importance of closing protection gaps and improving climate change preparedness across the world. In July 2026 alone, our preliminary assessment is that NatCat impacted our business for around €300 million, with around 60 additional million euros related to man-made events.

Beyond large-loss events, the current inflationary trend is another factor that we will reflect in our pricing, in particular in non-motor. Fourth, the operating result of asset and wealth management recorded healthy growth of 31.3% year on year.

This was driven by the robust underlying performance of both asset management and Banca Generali. The segment generated around 16% of the group operating result, underscoring the benefit of a diversified and integrated business model.

Moving to my fifth and final point, as the execution and delivery of our plan remain our top priorities, we also continue to expand our capabilities in key strategy growth areas. In this context, I would like to say a few words about Radian, the new brand for a global care platform.

Radian brings together leading capabilities across employee benefits, assistance, health, and mobility, serving multinational companies, financial institutions, and millions of customers around the world. It generates annual business volumes of over €5.8 billion, with more than 12,000 employees and operations in over 190 countries.

Radian is one of the very few truly global players in this field, being the leading employee benefits network and the second-largest player in travel insurance and assistance. Our ambition is to further leverage these leadership positions and become the world's premier care partner.

Radian stands out for both its scale and technology. It's a data- and AI-driven insurtech platform that combines Generali's reach and strength with the agility and innovation of leading digital players.

Building on this, we are now scaling embedded insurance, a new B2B2C growth engine that distributes seamless protection within our partners' digital journeys, from travel and e-commerce to financial services. This allows us to turn our global distribution relationships into a new and increasingly valuable source of profitable growth.

Our business model benefits from long-term structural growth drivers: rising demand for travel insurance and assistance, employee benefits, and embedded and integrated service ecosystems. This is why we are truly confident and excited about the opportunities for Radian, and we will, of course, provide regular updates on its progress.

In conclusion, the quality of our performance in the first six months of this year reflects the disciplined execution across our three key strategic priorities: excellence in our customer relationships, in our core capabilities, and in our group operating model. Furthermore, the insurance sector trends on which we build our plan are proving increasingly relevant, with some of them even accelerating.

This is particularly true when it comes to new needs deriving from major long-term social and environmental trends, including an aging population and insufficient public health care; the protection gap related to the increase in extreme weather events due to climate change; as well as changing customer expectations driven by market and technological shifts. It is a constantly evolving environment that requires us to stay agile, innovative, and forward-thinking, to lead and to deliver lasting value to our customers as their lifetime partner and to all our stakeholders as a standalone group.

The three foundations that underpin the plan are key to this: our talented people and the structured implementation of AI and data are allowing our business units to strengthen their core technical capabilities in underwriting, while further improving the quality of service to our customers and distribution partners. We also continue to demonstrate the quality and consistency of our approach to sustainability.

The Financial Times recently recognized us as one of the Europe's climate leaders, while Time and Newsweek included us in their rankings of the world's most sustainable and greenest companies. We are proud of these important recognitions, which make us even more determined to keep driving profitable growth while supporting a green and just transition and strengthening societal resilience.

Finally, before we open our Q&A, I am pleased to inform you that we will be holding an Investor Day on November 18th in London. This will give us the chance to further update you on the execution of our plan, as well as to showcase in detail some of our strategic initiatives.

You will receive all the details in the upcoming weeks, and we look forward to welcoming you there. I thank you very much again for your continued interest in Generali, and with all my colleagues, we are now happy to take your questions.

Fantastic. Thank you so much.

I have two questions, one a little bit cheeky. I think on the last call, Giulio said that he used the metro quite often to go and visit UniCredit to discuss business, sales and stuff.

Of course, today, Allianz also reports, Allianz sadly for them, they lost the UniCredit franchise. Is that the one that you're going to pick up, or are there plans here?

Anything you could say would be quite interesting. Then the other one is standard.

You talked about inflation and pricing. Could you give us a few numbers on what inflation we're seeing?

The feeling I have is inflation has picked up, pricing is still lagging, but I don't know how you're seeing it. Thank you.

Thank you very much, Michael. The first question is for Philippe.

The second is for Giulio and Marco.

Wait, sorry, Philippe. I didn't say I go to UniCredit often.

I said there are five train stops between UniCredit and Allianz and Generali. That's the difference, though, okay?

No,

we are already doing significant business with UniCredit, including bancassurance distribution in Central and Eastern Europe, including some asset management business as well. Definitely, we would be happy to expand the business we are doing with them, as we would be happy to investigate any other kind of business opportunities in Italy and out of Italy.

Okay.

On the pricing environment, I can tell you what we saw in the first six months. On the motor side, we see basically pricing holding up pretty nicely against the risk premium, we have a little bit of a positive spread.

When we look at the loss trends part, we see basically that the inflation is more or less in line with what we saw last year. We're speaking of inflation between 4 and 5%, but we see also frequency decreasing.

I don't know if you remember in the first quarter we told you that frequency was going up a bit, but that was also related to the difference in the weather-related events between the first quarter 2026 and the first quarter 2025. Now with the six months, we see this sort of normalization.

I would say, inflation-wise, very stable compared to what we saw last year. From a frequency point of view, I would say also still a decrease in frequency.

On the non-motor side, I would say in general, same story. There is just a country where we see a little bit of a pick up of inflation in non-motor, which is Germany.

We spoke about that also, if you remember, in end of June, and we are taking rate increases. Just to remind you, the combined ratio in non-motor in Germany is well below 90, we are speaking anyway of a very strong performance.

As always, we try to keep the marginality as much as we can.

Maybe adding a few words. We have a close monitoring about all the drivers that can cause inflation.

We are monitoring all the spare parts across Europe, across brand, across Asia. We look at the different driver.

We look at the medical rates if they're going up. At the moment, as Giulio was saying, we broadly see the market that it's constant in the way we see inflation, around that 4% that Giulio was mentioning.

There might be inflation. We are monitoring.

We don't see yet. We are preparing, we know that as soon as we see inflation, we know how to act.

By the way, I just want to remind you also that in non-motor, a large part of the portfolio is indexed to inflation, there is also an automatic I would say, recovery that we can make. At the moment, we see that the market is expecting that, but we don't see yet in our portfolio.

We monitor and look, and we know how to act if we see the sign of inflation.

Brilliant. Thank you very much.

Thank you, Michael. Next question, please.

Thank you for taking my question. Could I just follow up on a P&C and inflation?

Again, in Q1 you also said that you would make a decision on volume growth in P&C in H2. Oh, it looks like it's Germany sort of the odd one out, but in terms of other countries, where are you standing in terms of P&C volume growth?

My second question is on capital. The SCR ticked up in both life and non-life.

Presumably, that is normal business growth. You've still ended up a very strong Solvency II ratio for year '26, and we have the Solvency II review on 30th January.

Is it fair to say you will reassess your capital levels at full year results? Also, I suppose, will you still want to operate near the top end of the range?

Thank you.

Thank you very much, Fahad. The first question is for Giulio, while the second one is for Cristiano.

Speaking about the volume growth, I can tell you, first of all, speaking for the motor and non-motor in aggregate, I would say that 20% of our growth in motor is coming from volume, a little bit less than 20%. When we look at non-motor, including also accident, health, and disability, we are speaking of almost 1/3 of growth coming from volume.

When I look at the geography, I can tell you that we see actually I speak about motor right now, a good development of volume across the board. There are just, I would say, three exceptions.

One is Switzerland because we do a lot of pruning, and you can see the improvement in the combined ratio is remarkable. Another one is Spain, where we are also doing pruning and we are getting to a different and better level of combined ratio.

Then in Italy, if you compare this year this quarter, this six months to last to last year's six months, you see a decrease. In reality, the situation is stabilizing, and here we go back that we are managing clearly volume and profitability and try to find the right balance, and we have a very good performance on our motor book in Italy.

I would say and all the other countries, you can see a nice or good growth in volume. When we look at non-motor, I would say you see growth everywhere, with the exception of Switzerland, where we are doing a lot of of pruning, obviously, and also in this case, you can see the the improvement.

Overall, I would say from a volume point of view, there is definitely momentum, which is stronger compared to what we had a couple of years ago.

Regarding capital, hi, Fahad. I think that you are seeing the push for business growth, as we were saying already.

Clearly, depending on the mix of also this growth, when you have like we had in net inflow, especially this half year, even distribution between all the lines where traditionals usually have a slightly higher capital absorption. This also explain some part of the capital put at work for the new business, which is coherent with the positive environment and the future deployment for growth that we are having, foreseeing already the Solvency II review.

I reconfirm that in end of January 2027 that Solvency II review will enter into practice, we will have a 15 percentage points uplift. For sure on the final year '26 result, we will show a comparative starting point, which is a common practice I think all among the all industry.

We discuss all together, I think as well, in the forum. Regarding the level of the risk appetite framework, we confirm the level we had as we discussed in the Generali Exploring event of March.

Our floor top ceiling element at 230 still is confirmed. Our idea is to put this capital at work in four forms.

I repeat it. We are already consuming a little bit of capital through SAA optimization, something in the order of two points per quarter.

This quarter, we did slightly less because of the positive rates environment, which was not necessity leaving to obtain the desired target reinvestment result, to push for further risky assets, but on general, we are hinting for two points per quarter of SAA optimization. There was also a small event of Belgium downgrade, which accounted for 0.5 percentage point negative effect on solvency.

Overall, we will continue to deploy these extra points on four drivers: the first one is business growth, as we are already starting; second one is the investment SAA, as you said, and we'll continue to invest in the business, in the infrastructure in Europe and overall; and the third one for sure will be also in allowing us to have a better mix between the subordinated debt and the senior debt, which is not necessary now as required as capital as in the past; and fourth is for sure capital deployment, be it for growth, for M&A, or for sure returning capital to shareholders.

Thank you very much.

Thank you, Fahad. Next question, please.

Hello, everyone. Thank you for taking my question.

I'm just one topic with a few questions, please. Could you just talk a bit more about your view of the outlook for the new business value?

You've printed this very strong in my view, €1.89 billion. Just very short term, can we annualize it or could there be some variance in the second half?

Then what are you kind of thinking about the longer-term drivers? I always think a big company like you should be growing that number 5 to 10%, but I don't know if I'm kind of off-base to the upside or downside.

If you could talk a bit about the drivers, because I noticed in the detail Asia seems to have had a huge step up, which is great; Germany's a bit weaker; and Italy and France are in the middle. Just help me on the outlook for new business value, please.

Thank you very much, William. The first question is for Giulio.

The second is for both Giulio and Marco.

Thank you, William. On the new business value, I wouldn't say you can take the number and do times two, because actually, especially in China, we have a stronger, much stronger production in the first part of the year.

Part of it is always happening because it's linked to the Chinese New Year, there is a lot of production basically happening in the first quarter. Then also in this situation, there was some fire sale effect because of a change in the illustration rates in the second quarter.

From that point of view, you need to normalize China from a growth point of view. Otherwise, then the rest of the portfolio is evolving actually pretty normally.

There is also one other element to consider. It's true this is not the highest new business margin business that we have, but also the protection business of France, which is delivering new business value, is particularly skewed to the first part of the year.

From that point of view, I wouldn't take the number and do times two, but I can assure to you that we're going to have a much stronger growth in VNB than last year, and definitely we're going to meet this year your objective of 5 to 10% value of new business growth. It's going to be most likely much more for this year.

Moving forward, I would say clearly one driver of growth in our value of new business is going to be Asia. By the way, Asia is not only China.

We are also growing our franchise in India. I don't know if you remember, but basically last year, we found a new joint venture partner.

This joint venture partner is a bank. Even if in India, there is not exclusive bancassurance, clearly we get access to the branches of this bank.

I can tell you that in India, we had also a nice increase in present value of new business profit and also in value of new business. The marginality in India is about 7% right now, and we are doing for the six months about €250 million present value of new business premium.

That's also something to consider because I expect this to grow moving forward. Then we go back to Europe.

Definitely, we see a good dynamic in France. I cannot tell you this is going to go forever, but I would expect to see strong results coming from France also in the coming months or next year.

Italy is doing very nicely from a VNB point of view. If you look at Italy, even if the present value of new business premium is down, the value of new business growth is 5%, which is definitely a good starting point.

Then eventually, clearly the situation in Germany is going to normalize. From that point of view, I would say Asia, clearly leading in terms of growth, but also in Europe, I think we have a strong franchise, and we are going to push to have quality value of new business growth.

A couple of points that I think it's worth mentioning. The first is clearly we see the development of Asia, but also coming back to Europe, the dynamics of the demographic, the pension, and the need of people in this segment are going to be an important driver for us in the future.

Both I would say Germany, Italy, but also the CEE is going to be important. The second point that I want to mention is that the type of articulation of product that we have developed over the year, we always mention our hybrid product, multi-line product.

The ability and sustained growth of protection inside this product is going to be a driver of sustaining of the new business margin and therefore of new business value. As Giulio already point out, we always have done choices, and when we have a trade-off, we have done choices on value.

For example, you see how good was the development of value in Italy notwithstanding the decrease of volume. There is always this choice that we make.

To recap, demographic, pension, and also the type of product that we put on the market will be core driver of sustained growth of value for the future.

Interesting. Thank you, gentlemen.

Thank you, William. Next question, please.

Hi. Thank you for taking my questions.

First one, I guess, just given the strong investment performance in the second quarter, is there any change to either your operating investment guidance on the life side or the investment result guidance you've previously given on the P&C side? Then secondly, I guess just taking a step back, the adjusted EPS grew 16% last year.

It's up 14% in the first half this year. There's obviously no change to your targets at this point, but is it fair to assume that you'll come in materially above the top end of the target range for both '26 and I guess the three-year target as well, just based on where we're sat today?

Thank you.

Thank you, Andrew. Both questions are for Cristiano.

Yeah.

Hi, Andrew. I would say speaking about first the P&C effect in the second quarter, you have observed a very positive recurring growth of the investment result where there was a reduction of dividend from our private equity side, but we confirm the guidance given of €1.1 billion so far.

This is a proof point of the very good reinvestment activity done there together with the growth of the business. At the life side, I think especially in the second quarter in isolation, there were €25 million more, while in the P&C there were €24 million less.

Here, there are €25 million more on Lion River dividends and kind of €20 million more of dividends from the funds in China, which are more a kind of timing shift. That's why we still stick to the €900 million operating investment result for life as well.

Going to the second question related to adjusted EPS, we are not changing target, but we are hinting that we are confident that given this momentum, we will overachieve our target, and I think that this is the most important thing out of it, and it is not the first time we are saying it.

Great. Thank you.

Thank you, Andrew. Next question, please.

Hey, thank you. Good morning, and thank you for taking my questions.

The first one is on the rumors we have read in newspapers about a possible merger between the Generali Italian network and Alleanza, if you can provide any thoughts on this and if you think that this can accelerate the synergies and development of the business, as well as potentially extend the perimeter of collaboration with Banca Generali. The second question is on new business margin.

We have seen a really nice development, and if you think that we can go ahead of the guidance that you have provided so far. The other is if there is any possibility if you can provide us an indication of your full-year expectations on net other non-operating expenses that have declined quite materially year on year, and so any thoughts on this is appreciated.

Thank you.

Thank you very much, Andrea. On your first question, as always, we never comment on article, rumors, or speculations.

The second question on the new business margin will be taken by Giulio, while the third one on the non-operating items is going to be taken by Cristiano.

Sorry, guys. Yes, on the new business margin, clearly is a nice development.

By the way, I want to point out it's driven also by a nice increase of new business margin in Italy, and also the new business margin development in Asia is really favorable. For this year, I would say definitely we're going to be at the guidance that we gave you.

We said also many times in the last calls that we are not really focused necessarily on the 6% new business margin. For us, it's more important, also coming back to what William was saying before, to look at the value of new business growth.

If we need to, in some cases, have a little bit of less new business margin to add growth, a new business value growth, we are going to do that. I want to give you an example.

If you have a target of 6% new business margin, everything which is below 6% new business margin can be dilutive from that point of view. In theory, we should be in a situation where we had to forgive maybe business at 4 or 5% new business margin just to keep this 6%.

From that point of view, this is not necessarily the best course of action. Yes, we are basically at the 6% level.

We might maintain it, but if we see there are possibilities to grow the value of new business stronger, then we are going to be happy also to drift away a bit from the 6% level.

Yes, Andrea, regarding the net other non-operating expenses, as probably you may recall, we had the Exploring Generali event on finance in March. We were giving some, let's say, range guidance of €200 to €300 million on the specific other non-operating net expenses.

Clearly, please mindful that this kind of item is pretty erratic in nature, usually also with a seasonality skewed towards the fourth quarter. As well as, don't forget that we are also working, and that is the reason why you are seeing this reducing, for a allocation, and we did already in the past, moved from that item more than €80 million of cost, which have now being split evenly between life and non-life operating.

We are continuing this journey of extreme rigor around that to really keep a much lower capability to use that item in order to concentrate all the operating result impact of all the loading and charges, apart from very, very specific topic. There are also other part which are in parallel to that, like the amortization of intangibles.

That the more you do activity of growing the business, like we did last year purchasing asset management company MGG, we have amortization of intangibles for the client value part in it, which is part also of the non-operating overall result.

Thank you.

Thanks to you, Andrea. Next question, please.

Yes. Hi.

Good afternoon, everyone. Sorry to go back to Andrea's question on the net other non-operating expenses.

If I recall properly, fourth quarter last year, you had a lot of early retirement plans that affected this line. Are you expecting another kind of round of early retirement in Q4 this year?

The second is on cat losses, if you can give a bit more detail on the €300 million you mentioned, and if you can have some kind of guidance for the cat budget for full year 2026. Thank you.

Thank you, Gianluca. The first question is for Cristiano, while the second one is for Marco.

Yes. Gianluca, first of all, I recall what I was mentioning before was the subcategory other net non-operating expenses adjusted, the €200 to €300 million.

In the same event of Exploring Generali, we were hinting between €100 to €150 million of restructuring charges throughout the year. Far, we are trying to find any possible opportunity, but I think we will have more detail eventually in the nine-month results if we can accelerate further.

For example, the pension reform in Germany is allowing us to work on further accelerating efficiencies, and we are seeing whether this is something that can happen in '26 or in '27. In any case, there is an opportunity that this reform is bringing to streamline further, and so we will be more precise by nine months.

Thank you.

On the NatCat, I think the €300 million that you referred to are the one in July that we have recorded in July. Those are mainly two type of event.

One is severe convective storm, I think in the first part of July, that it's more around €25, €30 million, and the other one is the hailstorm in Europe in the second part of July in Italy, France, and Germany. Clearly, this is going to be on top of what you see in the half year.

Overall, what I can tell you regarding the budget is that we are very close to the budget. More likely, we are going to end up there or slightly more.

It's always difficult to forecast any NatCat. Now,

if I can add, also I want to remind you how we are covered on the NatCat, because I think there is a good work that we have done on the reinsurance treaty this year. There is not only the per-event treaty, which is above the €300 million, but also the cat aggregate that it's working in excess of €1.2 billion for €550 million of capacity.

Also this year, the structure is very interesting because we have a €10 million franchise, it's a very favorable setup. What you see here and what you have reported, you need always to remind that the net is going to be different because of this.

Overall, yes, we are going to be close to the budget, but on the other side, we will be covered also by the cat aggregate.

Thank you very much.

Thank you, Gianluca. Next question, please.

Sorry, it was just a follow-up on the NatCat question, actually. Cuz the convective storm and hail losses, the industry reports I've seen on those seem to be sat around a billion, slightly above a billion industry loss.

The market share seems very high. We haven't really heard your peers talk about this as yet.

Just wondering if there's anything specific about that loss, why you might be picking up a slightly higher market share. Then just a follow-up on the savings new business margin, which improved a lot half on half.

Could you just give us a bit more color around what's driving that improvement, please?

Of course, Iain. The first question is for Marco, while the second one is for Giulio.

Yeah. We have

on the loss that you mentioned, we have probably estimate that are higher compared to what you mentioned. We are almost between €4 and €6 billion, I would say our losses are in line with our market share.

At the moment, we don't see any different pick up of losses compared to our market share. This is going to be very much in line with the business.

The source that we are getting, these are market source, from broker reports and so I would say we are in line with our market share.

On the savings new business margin, there are basically two drivers. One is Asia, because we see an increase in new business margin both in China and also India.

In the case of India, it's because of volume; in the case of China, it's also volume, because clearly when you grow faster, your expense overrun/underrun gets better. Also, the quality of the production in China is better than last year.

We are basically selling par business, which is matched with a guarantee level which is going down. From that point of view, there is a quality of business which is better compared to last year.

These two elements, volume and quality of business, are improving the new business margin. The other country is Italy.

As I was saying before, yes, production has gone down in Italy, but actually the value of new business is going up. This is driven by the marginality, and I can tell you that we have increased by the marginality in traditional savings by about 100 basis points.

From that point, this is coming from product mix. Also last year, we still had some products which were on commercial discount, and this year, we are just running without any kind of commercial discount.

From that point of view, there is a quality production also on the savings part.

Perfect. Thank you.

Thank you, Iain. Next question, please.

Thank you. Good afternoon.

I just had a question on the strategic asset allocation and investment. Can you just remind me what the expected yield pickup is, please?

You're investing two points per quarter of SCR, what's expected yield pickup? I guess I'm most interested in what the marginal return on that SCR is generating for you.

Then secondly, a bit more of a big-picture question, but we've seen State Farm take a completely different approach to paying its agents, essentially focusing much more on new business at the expense of kind of harvesting the back book. Can you update a little bit on how the tied agents that you have in your network are remunerated and whether you have any plans to change that?

Thank you.

Apologies, James. The line was not very good on your second question.

Could you please repeat it for us?

Certainly. Hopefully, you can hear me now.

Is it better?

It is a bit better. Yes, thank you.

Okay. Yeah.

No, it's just a question, given what State Farm is doing in the US, I'm just intrigued about potentially paying the agents in a different way. Are there any plans afoot to focus more on new business generation rather than just harvesting the back book?

Thank you.

Thank you very much, James. The first question is for Marco, and the second question is for Giulio.

I can give you an highlight, and then also Cristiano can add on the topic. As we said, we were working on our SAA, in particular on the P&C side because we wanted to re-risk the SAA.

The uplift that you see on our operating income is coming both from the increase in asset under management and also from an increased rate that we have developed thanks to the risk in of the SAA. What you are seeing now in terms of operating income, especially on the P&C, is something that you should expect going forward, probably even slightly higher if I can give you these guidelines.

Giving you a few numbers. If we concentrate on the core countries where we develop the strategic asset allocation, which is the core part of the group, we are seeing a reinvestment yield including all the asset classes, including private asset, of 4.24%, which is allowing us to keep a spread of almost 1% more than the redemption component of what is happening, which is allowing us to get better commercial offer and then clearly embedded investment margin.

I'm referring this about life portfolio. Clearly, this number goes to 4.01 if we just look at the P&C portfolio, clearly talking about the core, which means excluding hyperinflationary countries or countries where we have a minor clearly weight versus the core European operations.

To your question about change in the remuneration to the agents, we are not changing the remuneration to the agents. I can tell you anyway that clearly growth is a component which is important in the remuneration of agents.

I would also say that generally, because I need to generalize, obviously we have different tied agency forces in different countries, but on the life side, a lot of the remuneration of the agents, incentive to the agents, are dependent on growth, and also growth is defined as net growth, clearly net of potentially what there could be lapses, loss in portfolio. From that point of view, it's basically remuneration which is geared to grow the portfolio, grow the assets under management.

On the P&C side, it's a combination clearly of growth, of new production. There is also an incentive on retention, and then we add generally also an incentive on quality of the business.

Fundamentally, I would say that's clearly our incentive system, which is not just the compensation, but also you have other forms of nudging the agents to push production, is definitely geared in terms of increasing the productivity of the agents. That's the ultimate goal, basically, of any remuneration system.

Hey, James, to complete because I think I didn't answer in the return on the SCR benefit, we are adding 1.5 percentage point of return on SCR from this investment compared to the previous asset allocation. It is, as we called it, RoRC accretive, return on risk capital accretive.

Thank you.

Thank you, James. Next question, please.

Yes, good afternoon and thank you for taking my questions. The first one is a follow-up on the most recent NatCats.

Do you have any impacts from the wildfires in France and Spain, because you didn't mention before. Then the second question is on the pension reform in Germany.

What are the steps that are still now ahead for its adoption? Will it come into force on the 1st of January, as you are mentioning at the event in June?

When would it start to contribute to your life and asset management business? Thank you very much.

Thank you very much, Elena. The first question is for Marco, while the second one is for Giulio.

Correctly you're pointing out a correct point, I didn't mention the wildfire that there are at the moment in France, but also Spain, I would say. These are typically booked under the man-made, not the NatCat.

These are very recent. We are looking at that.

We are doing our first estimation. We believe they're going to be under the €100 million.

Both combining the French side and the Spanish side, we believe they can be, yeah, less than €100 million, I would say, considerably less, but please remember these are booked under the man-made.

On the pension reform in Germany, because I don't know if everybody is familiar with the pension reform in Germany, I just describe how the pension reform is working. It's basically a substitute for the Riester products.

The state has decided to introduce a standard product. The standard product is a very low-cost product, but this also means a little bit low value in the sense there is not much choice in funds, and also there is not an option with a guarantee.

Anyway, you need to be offering the standard product in order to offer other solutions where you can put guarantees or you can put a broader fund allocation. Also, a change is that for the products without guarantees, also non-insurance players can offer this product, technically speaking, banks, asset manager, neobroker.

Another point which is a positive is that the subsidies are larger compared to the subsidies that were given before, and so this clearly is going to increase the number of people that are going to go into this solution. Also, the amount of people which are eligible for this kind of products have been increased.

Immediate effect, because we see an effect, has been that actually production has slowed down. When we look at what is happening right now is people clearly are staying on the sideline because they're waiting for the reform to come, and we are positioning us for January 1st.

As we are very strong in life in Germany. We have the strongest distribution footprint compared to any competitor, which is DVAG.

Also, DVAG is very strong on this kind of solution. From that point of view, we think that, sure, it's going to be a little bit of losing some customer and getting some customers, but we are very well positioned.

We are also starting soon a marketing campaign in order to be prepared for January 1st. All in all, I would say this could be an opportunity for us if we play this well.

Thank you, Elena. Next question, please.

Morning, all, and just two questions if I may. Firstly, with regards to Radian, I just wondered if you could walk us through the industrial reasoning for the new set up there, and maybe what the key changes will be on the ground, and how you expect that to carry through into kind of target deliverables.

I suppose it's mainly a revenue discussion built around wallet share, but I just want to check whether there's a cost or capital management angle to this, too. Then secondly, can you just explain what's driving the higher yields in the non-life investment portfolio?

In particular, is that just a passive reinvestment outcome into the current curves, or a more active consequence of portfolio management? Thanks.

Thank you very much, Farquhar. The first question is for Giulio, while the second one is for Cristiano.

I would say the Radian business consists of two pillars, and then we also adding some other capabilities into this business. One pillar is the pillar basically of travel and mobility assistance.

This business is overall doing about €4.5 billion of turnover. Just to give you an idea, 60% of this turnover is in travel, 30% is mobility, and then the rest is in other form of assistance.

It's a business also that has a lot of travel business in the US. It's about 40% of our exposure, and then the rest is 50% around of the business is in Europe, and 10% of the business is fundamentally in Asia.

That's one part of the business. The other part of the business is the employee benefits.

This is a business that right now has €1.5 billion of revenue, but with the acquisition of Swiss Life, we are going to double basically those revenue. I will look at these two businesses as two different pillars.

Also, we are using Radian for potentially expanding embedded insurance, especially when we have embedded insurance on an international kind of platform, because Radian is clearly capable to work with the different business units. They do that in the assistance business, and they have the capabilities clearly to do this also in other lines of business.

If you remember when we presented the strategic plan in January of last year, we talked about the health service factory. This is also something that Radian is basically putting in place.

From that point of view, it's a global platform. It's also a global platform which is digitally enabled, and so this allow us to be very nimble in pushing lines of business where you want to have basically a direct connection to the consumer.

Look at this business somehow also a little bit like a B2C business with a good level of digitalization. Now, the numbers that we saw in the last years have been very positive.

Also, if you look at the six months' numbers, you can see in the Radian what we call assistance and insurance business, a double-digit growth both of revenue and also of profit. We continue to invest in this business to make sure that we can see continued growth also in the future.

Hello, Farquhar. Regarding the higher yield on the portfolio, just to set the delta especially between what is invested at 4.01 in the core portfolio and what is maturing at 2.37, which makes a 1.64% positive spread pulling up, is something driven by liquid asset classes investment.

Maybe you noted that the amount of private debt is basically substituting simply which was there. There is a higher weight of liquid fixed income, in particular on the credit side.

This is consistent with the statement and the explanation we were giving before of putting the capital at work, because clearly the benefit is purely a shareholder-driven, and we have enough risk-bearing capacity in this environment to profit from that, clearly within our risk appetite framework. This, in any case, is showing already his fruit because clearly on a half-year-over-half-year basis, you see on this kind of components a kind of €87 million improvement of recurring income.

Got you.

Thank you very much, Farquhar. Next question, please.

Thank you very much for this opportunity. I hope I'll ask something clever.

The first one is really a general question, but so your operating capital generation I think 2.4 billion net of SCR, that's a lovely number. It is, however, just 9% of the total pot, if you like.

Some of your peers have higher numbers. Now, they're not hugely higher, but they seem to be consistently higher.

I know you don't obviously want to talk about your peers, but I just wondered, is your accounting more cautious or is there something I'm missing? Then my traditional question to Cristiano, can you talk about cash?

I love cash. I'd like to think you're going to bathe in it during your holidays, but any indication would be lovely.

For sure. I start with the most boring, and then I will end with the happy part, jokes aside.

The first topic on the operating capital generation, it is something that we are looking at. For sure, there is a difference if we compare ourselves towards other, let's say, standard of industry, because the component, as explained in Exploring Generali, of especially the best estimate change of the prior-year development is not part of the capital generation.

Clearly, we are underrunning a couple of 1 to 2 percentage point of operating capital generation if you want really to compare like-for-like on the peers. Then there is another element related to potential asymmetries.

There are countries and peers which operates under equivalence regime and countries like us where we do not have equivalent regime. When we evaluate capital generation, we use Solvency II rules even in countries where Solvency II is not applied, and it is much more punitive compared to the local capital part.

If you take also wiping out these let's call regulatory asymmetries without any form of real underlying limitation for the local development of the business, we were, in our opinion, in line. Another difference which I think I notice is that we account for the full deduction of the cash spent for the full amount of any LTI plan used and not for the actual cost that we pay for it.

In some cases, we buy more shares than the one which were actually needed. We deduct it from the capital, and we don't have a kind of positive recovery out of that.

Going to cash, first, I want to have a good news for both you and I, which we do care. In July, we received the first remittance from Switzerland.

I think this is a very positive news, which we were hinting from years, and we were explaining even in the plan. It is here.

On capital, job finished; on business, job not finished, but clearly there is a very good momentum in the expense ratio and all the change that they are doing. Having said that, we are almost, but not at 95% of the total remittance of the year collected so far, and it is €4.6 billion, and I hope this brings a very nice number to put in your projections.

Brilliant. Thank you so much.

Thank you, Michael. Next question, please.

Thank you very much for listening to our call. Of course, should you have any follow-up questions, the investor relation team is at your full disposal, and we all look forward to see you in London on November 18th.

Have a great weekend, and goodbye.