Generali Group: Consolidated Results at 31 December 2016 *
Excellent 2016 Results, Dividend per Share 11.1% higher
Acceleration on cost savings and improved performance in all markets driven by successful execution of strategic plan
- Record operating result, more than €4.8bn with excellent Life (+5.5%) and P&C (+2.9%) trends, thanks to improvements in technical performance and even greater discipline on Opex costs, decreasing for the first time
- Operating RoE at 13.5%, reconfirmed in line with target (>13%)
- Market leading P&C technical profitability, improvement in CoR to 92.5% (-0.7 p.p.), reconfirmed as the best amongst peers. Further improved performance of Life profitability with NBM growing at 25.9%
- Gross premiums above €70bn: P&C up (+2.1%), continued disciplined approach in Life (-6.3%), confirmed by the high quality of life net inflows, above €12 bn
- Net profit up to €2.1 bn (+2.5%), notwithstanding lower realized gains
- Dividend per share of €0.80 (€0.72 FY15) an increase of 11.1%
- Significant increase in cash generation: Net Operating Cash at €1.9bn
- Solid capital position confirmed: Regulatory Solvency ratio at 177%; Economic Solvency ratio at 194%
- Acceleration to 2018 from 2019 of targeted €200mln net Opex cost reduction in mature markets
The Generali Group CEO, Philippe Donnet, affirmed: “Our excellent 2016 results confirm that Generali is an industry leader in terms of profitability and performance. These results demonstrate our ability to deliver on our commitments. Operating result and cash generation are the highest ever, driven by further improvements in the performance across the whole group. In Life, the net inflows are very strong, with high margins thanks to a successful focus on the business mix. In P&C we improved our already best in class combined ratio. Thanks to a tighter focus on the efficiency of our operating machine, we reduced costs for the first time and we will now deliver our 2019 savings target on mature markets one year ahead of plan.
I am encouraged by Generali's progress in the last year. We are already seeing the early results of our “Simpler, Smarter. Faster” Plan, announced in November 2016. We will build further on these achievements and we have the best possible team to accelerate the execution of our current strategy. Moreover, Generali can count on a unique distribution model of more than 150 thousand dedicated agents and salespeople around the world, who ensure a closer relationship with clients based on trust, expertise and understanding. This, together with the unparalleled level of pride and passion of all Generali employees, is an incredible asset which underpins our success at all times.
We are proud of these results, but we consider them only a first step in a journey to become the best insurance company for clients, distributors, employees and investors and we look to the future with confidence, as an independent, Italian, international group.
In the light of our excellent results and the solid capital position of the Group, we have recommended a dividend of €0.80 an increase of 11.1% over the previous year.“
* Changes in premiums, net premium income and APE are presented in equivalent terms (at constant exchange rates and scope of consolidation). Changes in operating results and own investments exclude entities sold from the comparative period.
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