Generali reports operating profits of 6.44 billion in the first nine months
Net profit is also rising, approaching 3.6 billion, whilst premiums have reached 76.5 billion. The combined ratio has been affected by the catnat effect
Key points
Premiums on the rise, operating profit up despite the impact of catastrophic events, and a solid capital base. These are the key figures for Generali’s first nine months, with gross premiums rising to 76.5 billion (+4.5 per cent), driven by both Non-Life (+6.3 per cent) and Life (+3.5 per cent).
The detail
Net life premium inflows remained strong at 11.7 billion (+13.6 per cent), thanks to positive contributions from all business lines. Operating profit rose sharply to 6,446 million (+8.5 per cent). This was despite the impact of catastrophic events, which was reflected in the combined ratio rising to 92.8 per cent (+0.5 percentage points), whilst the undiscounted combined ratio rose to 95.1 per cent (+0.9 percentage points), reflecting the greater impact of claims.
Operating profit for the Asset & Wealth Management segment surged to over 1 billion, up 23.2 per cent, thanks to the solid performance of both business lines. This was against a backdrop of assets under management reaching 934 billion (+3.8 per cent), of which 44 per cent were third-party assets. As a result, normalised net profit rose significantly to 3.7 billion (+12%), whilst net profit increased to 3,597 million (+11.9%).
The company’s very strong capital position has been confirmed, with a solvency ratio of 211 per cent.
The comment
“The excellent results for the first nine months reflect the effective implementation of our strategic plan and confirm the Group’s strong growth, underpinned by all business segments,” commented Generali’s CFO, Cristiano Borean. In particular, “the Life segment continued to record net inflows at the top of the sector, with growth in the value of new business and strong profitability. The Non-Life segment demonstrated resilient performance, despite the impact of natural disasters and man-made events being one billion euros higher than in the same period last year. Asset & Wealth Management continued to post significant growth in results. This performance demonstrates the strength of our business model’s diversification, the quality and resilience of our earnings profile, and our disciplined approach to capital management. This further strengthens the Group’s competitive position and gives us great confidence in our ability to exceed all the targets set out in our strategic plan ‘Lifetime Partner 27: Driving Excellence’,” concluded the manager.
