LONDON, 24 January 2019—AM Best has assigned an indicative Long-Term Issue Credit
Rating of “a-” to the forthcoming EUR 500 million fixed rate senior dated subordinated notes due 2029 to
be issued by Assicurazioni Generali S.p.A. (Generali) (Italy). The outlook assigned to this Credit Rating
(rating) is stable, which is in line with the outlook of Generali’s Long-Term Issuer Credit Rating (LongTerm ICR).
The notes will be issued by Generali under its EUR 15 billion euro medium term note programme
that was renewed in May 2018. The senior dated subordinated notes will pay a fixed annual coupon of
3.875% until their due date in January 2029.
Generali intends to use the proceeds of this issue to refinance partially the EUR 750 million of
subordinated debt callable in 2019, in line with its strategy to reduce total debt by EUR 1.5 billion to EUR
2.0 billion by year-end 2021.
AM Best expects Generali’s financial leverage ratio to increase temporarily following the
issuance of these notes, before moving to a more moderate level following the redemption of the debt
callable in 2019. AM Best will continue to monitor Generali’s interest coverage and leverage ratios.
The rating of the senior dated subordinated notes is two notches below Generali’s Long-Term
ICR, reflecting the fact that they are subordinated to Generali’s senior creditors, but senior to any of the
company’s deeply and more deeply subordinated obligations. The notes will rank pari passu with more
senior dated subordinated notes of Generali for so long as dated subordinated obligations in place as at 23
May 2018, which are expressed to be senior subordinated obligations with a specified maturity date, are
outstanding. The senior dated subordinated notes would rank junior to the more senior dated subordinated
notes thereafter, which could result in an increase of the notching gap between the rating of the senior
dated subordinated notes and Generali’s Long-Term ICR