Here we've been given some assumptions for Generali, an Italian insurance company, and we are gonna use those assumptions to build an integrated financial statement model for them. Now, let's spend a bit of time just getting familiar with how the model is set up and also Generali's insurance business. So first of all, you can see that we've got the assumptions at the top and that's for the premiums and also for the balance sheet. Next, we have some calculations and that's both for gross written premiums and also for key balance sheet line items. Next, we have the actual balance sheet and helpfully, we've been given the historic information for the last three years. However, we don't have yet the subtotal so we're gonna need to put those in. But before we do that let's just have a quick look at some of the line items here. Firstly, the provisions, and you can see that we have P&C insurance provisions as well as life insurance provisions, and that's because Generali has both a life business and a P&C business, so we're gonna be modeling these separately. Now the other thing to note is that we have this memorandum item in italics here and these are provisions where the investment risk is borne by the policy holder. So, these are presumably unit-linked policies but it's important to note that these are also included in the item above, so when we are calculating our subtotals we need to be careful not to double count them. Now you'll see we have a similar situation also within our investments balance where we have life investments and also the investments where the investment risk is borne by the policy holder. But again, this is a memorandum item because these balances are also included in the line item above. So let's calculate our subtotals. So we start with total assets and we just sum those and then make a little adjustment to make sure we exclude our memorandum item.

And now we roll that forward into our first forecast year, so we've got our subtotal for total assets for all our historic years and our first forecast year.

Now let's do the same for total liabilities and equity. Again, we sum everything and then we just make a little adjustment to exclude the memorandum item.

And again, we roll that forward into our first forecast year. Now, as we always do when we're building a balance sheet we'll put in a balance sheet check to make sure that our total liabilities and equity are equal to our total assets. And that's great, you can see that the balance sheet is balancing there. Now let's carry on looking through our model. Next, you can see our income statement assumptions and you can see that these assumptions are split between the life segment and the P&C segment. And again, we're gonna be modeling these separately for the income statement.

Next we have the income statement, and again, we've got the historic information for the last three years but we don't have any subtotals, so let's pop those in now.

So for the life segment, we can just sum those together to give the life segment result and we can do the same for our P&C segment result.

Now, our total operating result is then just our life segment result plus our P&C segment result and then any other investment income and operating income.

Now we can calculate our profit before tax in exactly the same way as we would for a corporate. We just take our operating profit, add or deduct any non-operating income and deduct the interest expense. And again, we'll roll that forward. And then finally, our profit for the year is just our profit before tax less the tax charge.

So now we've put our subtotals into our income statement. There's just one more thing we need to look at and we can see at the bottom we've got these solvency capital assumptions and also the calculations for our capital requirements. And we are gonna need that when we are calculating the equity of Generali.