The value of the day in Europe – Generali: investors shun its results

(AOF) – Generali lost 1.51% to 14.66 euros and found itself in the bottom of the ranking of the Italian index, FTSE MIB. The Italian insurer has yet unveiled results above expectations in the first half. According to UBS, all divisions, life insurance, damages and asset management, performed better than expected. In his press release, the managing director, Philippe Donnet, welcomed “this solid performance” in “an increasingly uncertain geopolitical and macroeconomic context”.

In the first part of the year, its net income however fell by 9% to 1.40 billion euros, weakened by the depreciation of 138 million euros of its investments in Russia.

Operating profit increased by 4.8% to 3.14 billion euros, where the market expected 2.964 billion euros. It benefited from the strong increase in profits from the life insurance business: +17.1% to 1.69 billion euros.

Generali reported a combined ratio up 2.8 points to 92.5%. The lower this indicator is and less than 100, the more profitable the insurance business.

The new business margin, a key indicator of the sector, increased by 59 basis points to 5.23%.

The asset management activity saw its operating profit fall by 3.3% to 503 million euros. If, due to the fall in the markets, outstandings fell by 10.3% to 516.2 billion euros, Generali recorded inflows of 2.1 billion euros over the half-year.

The group’s gross written premiums, corresponding to turnover, increased by 2.4% to 41.9 billion euros, supported by non-life insurance (+8.5%). The consensus stood at 41.12 billion euros.

Regarding its financial strength, the competitor of Axa ended the half with a Solvency II ratio of 233%, an improvement of 6 points in one year. This takes into account the €500 million share buyback program, which will be implemented this semester.

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