Generali up well, market appreciates solid results

(Il Sole 24 Ore Radiocor) - In a session of weakness for the Milan stock exchange (FTSE MIB ), Generali is bucking the trend and posting a healthy gain after closing 2025 with the "best ever" operating profit at €8 billion (+9,7% year-on-year), driven by all business segments, and a record normalised net profit of EUR 4.3 billion (+14.5%) and broadly in line with analysts' average expectations. "The operating result is above consensus thanks to P&C and the life business is broadly in line with estimates," Barclays points out. In particular, "we are seeing signs of strength, with a higher than expected Solvency Ratio, benefiting from market effects. Fourth-quarter profit also exceeded expectations, mainly due to higher investment income,' Citi analysts explain, pointing out that the Solvency Ratio stood at 219% (up from 210% at the end of 2024), while the Combined Ratio improved by 1.4 percentage points to 92.6%.

Generali closed the first year of the new plan with gross premiums 2025 reaching €98.1 billion (+3.6%), thanks to significant growth in the Non-Life segment (+7.6%), while Life business - "at the top end of the sector", underlines a note - reached €13.5 billion "driven by pure risk and health, hybrid and unit-linked products". Total assets under management thus reached 900 billion lire (+4.3%). Net profit, on the other hand, was up 12% to EUR 4.17 billion. "Although fourth-quarter results were below our expectations (positioned at the high end of consensus), Generali reported a solid set of results, with sustained growth in both P&C and Life. With adjusted earnings 2025 Generali exceeded the guidance of EUR 4.25bn provided in November and showed adjusted earnings growth above the trajectory indicated in the business plan," add Equita's experts, explaining that "the main positive surprises in terms of capital and distribution were the Solvency Ratio up five percentage points quarter-on-quarter benefiting from strong organic capital generation and the dividend per share of €1.64, +14.7% and above expectations, while the €500m buyback guidance is in line with expectations".

The record results achieved in 2025, explained CEO Philippe Donnet, "successfully conclude the first year of our strategic plan and confirm the ongoing creation of value for all our stakeholders. In a context still characterised by great uncertainty, we have further strengthened our role as a genuine Life Partner for all customers, offering them protection, serenity and stability'. Looking ahead, as Banca Akros points out, the company 'did not give a quantitative outlook but reiterated the targets presented at Capital Market Day for the period 2025-2027'. Targets that are after all 'very ambitious', as Donnet also said.