Balance sheet strength
Solvency I pro-forma a 164%
The Solvency I ratio amounts to 156% (+15 p.p.) with a €10.4 billion surplus due to the capital strengthening activities and in spite of the acquisition of the remaining 24% share of Generali PPF Holding.
If the disposal of BSI is also taken into consideration, the pro-forma ratio reaches 164%, surpassing the forecasted target for 2015.
"The results of the year show that the Group operating performance and capital position still improve despite an adverse market scenario and thanks to the strategy implemented, from which we expect a further future contribution to the journey in the value creation for all stakeholders."
Alberto Minali, Chief Financial Officer
Operating return on equity over the cycle at 13.2%
The Operating return on equity (ROE) is 13.2%,increasing with respect to 11.7% at the end of 2013, mainly due to the positive trend in the insurance operating result.
- Interest coverage ratio 5,3x;
- Leverage ratio 38,5%
The Leverage ratio at 38.5% and the Interest coverage ratio at 5.3x are shown net of the double counting linked to the pre-financing activity of the 2015 maturities.
The improvement of 1.1 p.p. of the Leverage ratio compared to 2013 is a consequence of the stock debt reduction by € 1,000 million, of which € 500 million related to the senior bond already pre-financed.
The Interest coverage ratio increased by 1.1x thanks to the improvement of the Group profitability and to the reduction in interest expenses due to the refinancing activity at lower rates and the net reduction of the stock of debt.
- Net Free Surplus 2 mld
- Net Free Cash before Dividends 1,2 mld
The Net Free Surplus is stable with respect to previous year and in line with 2015 target. This confirms that the Group profitability and free resources generation relies on solid fundamentals. Also the Net Free Cash before Dividends is line with 2013 results as well as 2015 target, also considering the reported remittance ratio around 73%.