Generali Group: Interim Financial Information at 31 March 2017
The first quarter results confirm the effectiveness of core business operations: operating performance is up significantly and net result is solid. Strategic profitability objective reached again
- Operating result exceeds €1.2bn (+4.2%). P&C performance remains solid and Life and Financial business improve further
- Combined Ratio at excellent level, 93.1% (+1.1 p.p.) despite increased catastrophe claims. Excellent Life profitability with strong growth of NBM at 37.8%
- Operating RoE rolling increased at 13.6% (+0.1 p.p.), again in line with the target (>13%)
- Premiums over €19.2bn (-2.5%): growth recorded in P&C business (+1.9%) and the disciplined approach to Life business continues (-4.6%)
- Net result confirmed solid at €0.5bn (-9%). The decrease is attributable to the lower non-operating investment result, mainly due to the continued policy to reduce realised gains, and to the stronger impact of taxation
- Solid capital position with Regulatory Solvency Ratio at 178% and Economic Solvency Ratio at 195%
The Group CFO of Generali, Luigi Lubelli, commented: “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%. Confirming the effectiveness of business operations in line with strategic objectives, the operating result increased due to the solid performance of the Property&Casualty business and improvement of the Life and Financial segments. The new business margin (NBM) continued to rise, reaching 37.8% 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”.
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