Generali’s Q1 Net Profit More Than Doubles Driven by Non-Life Insurance Segment

This content was published on May 25, 2023 – 08:05

May 25, 2023 – 08:05

(Keystone-ATS)

The number one insurance company in Italy, Generali, saw its net profit more than double in the first quarter, to 1.2 billion euros. The Trieste insurer benefited from the “robust growth” of its damage segment.

This result, published Thursday, is higher than the consensus of analysts compiled by Factset, who expected an average of 727 million euros (700 million francs).

The insurer posted an operating profit up 22.1% to 1.82 billion euros, again exceeding the expectations of analysts who had forecast an average of 1.66 billion euros.

Operating profit was mainly supported by the performance of the property and casualty segment (+74.6%) and to a lesser extent by life insurance (+1%). Conversely, asset management fell by 10%.

“The strong and profitable growth recorded in the first quarter confirms that we are on track to achieve the objectives” of Generali’s strategic plan, commented its chief financial officer, Cristiano Borean, quoted in the press release.

The results are presented for the first time according to the new accounting standards for the sector, “which allows us to significantly improve visibility”, he added.

Generali has confirmed all the objectives of its strategic plan, including an increase in earnings per share of 6 to 8% per year and cumulative dividends of 5.2 and 5.6 billion euros over the period 2022-2024.

The entry of gross premiums, the equivalent of turnover, increased by 1.3% to 22.16 billion euros, also driven by the damage segment (+10.1%).

The Italian insurer’s economic solvency ratio stood at 227% at the end of March, a very high level, compared to 221% a year earlier.

Mediobanca, Generali’s largest shareholder, said Wednesday that it had “no dogma” regarding its 13.1% stake in the insurer.

If in terms of mergers and acquisitions, “there was a big operation for which we would need a lot of capital, we could sell the entire stake”, assured Alberto Nagel, managing director of the Italian investment bank.

However, Mediobanca “has no major operation on the table”, he qualified.