Contributing to the economies of the countries

We also have a significant impact from an economic perspective: we contribute to the budget of more than 60 countries worldwide through taxes paid locally.

As at 31st December 2015Earnings
before taxes (€m) 
Income taxes
tax rate 
Generali Group 3,407 1,112 32.6%
Italy 2,047 427 20.9%
France 729 206 28.3%
Germany 766 235 30.7%
CEE 375 48 12.8%
EMEA 872 167 19.2%
Americas 75 64 84.7%
Asia 160 15 9.3%
International Operations -1,618 -50 3.1%

In 2015 we paid taxes totalling over € 1 billion. The consolidated effective tax rate, calculated as the ratio of income taxes to earnings before taxes, amounted to 32.6%, reflecting the rates of income tax and the current regulations in each jurisdiction. Since most of the Group companies operate in countries with high tax regimes (such as Italy, France and Germany), the consolidated effective tax rate is high. Over the years, it has not changed significantly: it was slightly lower at the end of 2015 than at the end of 2014, when it was equal to 35%.

In 2015 the consolidated effective tax rate was mainly affected by a number of specific elements, such as the presence of tax-exempt income (for example, the distribution of dividends and tax-exempt capital gains), the substitute tax on Controlled Foreign Companies (known as the CFC rules) provided for by Italian legislation, local income tax (IRAP), nondeductible expenses (for example, the taxes related to previous years in Germany) and adjustments to deferred taxes.

We believe that, in the near future, the consolidated tax rate will remain in line with recent financial years, unless specific corporate restructuring activities are undertaken.

As institutional investors, we contribute to the development and financial stability of the countries through investment in government bonds of around € 163 billion, representing 33% of our total assets under management. We also support the development of the real economy, including through investment in corporate bonds (non-bank) of around € 57 billion.