Profits dip at Generali in otherwise solid results
Both profits and growth dipped at Italian insurer Generali in the first quarter as the company blamed a more disciplined underwriting approach in its life business and a lower investment result due to its policy of reducing realised gains.
The company made a net profit of €500 million in the quarter, a decrease of 9 percent on the same period a year earlier, which it blamed on a lower non-operating investment result, mainly due to the continued policy to reduce realised gains, and to the stronger impact of taxation.
In contrast, its operating result increased by 4.2 percent to €1.2 billion in the quarter. Its combined ratio was 93.1 percent, a deterioration of 1.1 percentage points on the year before.
Its gross written premiums decreased by 2.5 percent in the quarter to €19.2 billion. This was mainly because of a selective underwriting policy for savings products, where GWP dropped by 18.6 percent. In contrast, its property/casualty unit was up by 1.9 percent as a result of what it called the positive performance of both business segments.
Luigi Lubelli, the group CFO of Generali, said: “The first quarter’s results confirm the excellent performance in terms of the Group’s profitability and capital strength. In a scenario of persisting financial market volatility and low interest rates, and considering the absence of catastrophes during the previous year, Generali has continued its disciplined and effective approach to its core business.
“We have generated further value, which is reflected in excellent results and technical performance among the best in the industry, with operating RoE again in line with the target at 13.6 percent.
“Confirming the effectiveness of business operations in line with strategic objectives, the operating result increased due to the solid performance of the property and casualty business and improvement of the life and financial segments.
“The new business margin (NBM) continued to rise, reaching 37.8 percent and the combined ratio held to excellent levels, despite the stronger impact of natural catastrophes. In the Life segment, the trend in premiums and net cash inflows reflects the disciplined implementation of a more selective underwriting policy in the savings segment and the rebalancing in favour of products offering better risk-return terms. Premiums in the P&C segment, on the other hand, increased as a result of the good performance in both motor and non-motor business.”
Today’s stories
Specialty business buoys Beazley in Q1 against 'challenging' backdrop
Validus Holdings appoints reinsurance CEO as president
JLT Re bolsters aviation practice with Lockton duo
American Insurance Association CEO Pusey steps down
Charles Monat to buy Willis Towers Watson's global wealth solutions unit
TMK launches construction insurance online
Did you enjoy reading this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
Already registered?
Login to your account
If you don't have a login or your access has expired, you will need to purchase a subscription to gain access to this article, including all our online content.
For more information on individual annual subscriptions for full paid access and corporate subscription options please contact us.
To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.
For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk
Editor's picks
Editor's picks
More articles
Copyright © intelligentinsurer.com 2024 | Headless Content Management with Blaze