Italy-headquartered insurer Generali has reported a record operating result of €6.5 billion for 2022, helped by a significant improvement in its Life segment results, as well as premium growth in Property and Casualty (P&C).
The overall operating result was up 11.2% over the previous year, although the increase in the net result was more muted at 2.3% as investments proved volatile, ending the year at €2.9 billion.
Performance was boosted by a huge 25.1% increase in the Life operating result, which amounted to €3.5 billion thanks to strong technical profitability, as well as a 1.7% increase for P&C, which came to €2.7 billion.
Generali also posted a slightly higher combined ratio of 93.2% due to the performance of its motor line, as well as higher large man-made claims and natural catastrophe losses.
Looking at gross written premiums, the P&C segment result grew by 9.8% to €28.6 billion, with 11.4% growth for non-motor lines and 6.5% growth for motor lines.
For Life business, premiums shrank by 2.4% to €52.9 billion, as protection line growth of 3.8% was offset by a contraction of 3.3% for its unit-linked line and a 5.5% reduction for its savings line, which reflected Generali’s strategy to position its Life portfolio.
Looking ahead, the company says it will continue to rebalance its Life portfolio in an effort to further increase profitability and allocate capital more efficiently.
In the P&C segment, the group’s objective is to maximise profitable growth in its mature insurance markets, especially in the non-motor line, and to continue to strengthen its position in markets with high growth potential by expanding its presence and offering.
Furthermore, due to rising inflation in 2022 which mainly affected the motor line, Generali expects further rate adjustments, which will also address the impact of increased cost for reinsurance protections.
“Powered by a clear vision to position the Group as a global leader in insurance and asset management, we are on track to achieve the targets and ambitions of our strategic plan, delivering sustainable growth to create value for all our stakeholders, even in a challenging geopolitical and economic context,” commented Generali Group CEO, Philippe Donnet.
“This has enabled us to propose to our shareholders, once again, an increased dividend, thanks to continued earnings growth and the Group’s strong cash and capital position. Generali also continues to lead the way in sustainability, now fully integrated within all the Group’s business activities in line with our commitment to act as a responsible insurer, investor, employer and corporate citizen,” he added.