Italian insurance giant Generali has posted 16.6% growth in net income over the first nine months of 2019, with improvements across all business segments.
Net profit stood at €2.16 billion at September 30, although this figure was inflated by a one-off gain of €475 million from asset sales and a €188 million charge from a buyback of subordinate notes.
Looking at operating profit, Generali recorded an increase of 9.1% to €3.93 billion as a result of the positive contribution from all business segments.
The operating result of the Life segment grew by 5%, reflecting both the development of the technical margin net of insurance expenses and the positive contribution from the investment result.
Generali’s P&C segment, meanwhile, saw its operating result rise by 3.1%, driven by the technical result, which offset a decrease in net current investment income.
The combined ratio for P&C business was 92.5%, reflecting an improvement in the non-catastrophe current year loss ratio. Natural catastrophe claims in the period amounted to approximately €262 million.
For the Asset Management segment, the operating result increased by 16.8%, mainly following an increase in operating revenues that also reflects the consolidation of the new boutiques.
Finally, the operating result of the Holding and other businesses segment also improved due to the higher contribution of Banca Generali, increased income from private equity and real estate as well as the positive development of the Planvital pension fund (Chile).
In line with this positive performance, Generali posted gross written premiums growth of 3.2% compared to last year, standing at €51.38 million.
Life net inflows were up by 24.5%, exceeding €10 billion for the nine-month period, while life premiums increased 2.8% from the growth in protection and in savings.
P&C premiums similarly increased by 4.3% thanks to the positive performance of both business lines.
“Generali has achieved strong results in the first nine months of the year thanks to the growth in all business line,” said Generali Group CFO, Cristiano Borean.
“Technical excellence has been confirmed; in particular, in the P&C segment with an outstanding combined ratio and further premium growth as well as in the Life segment, thanks to a solid new business margin and growing net inflows,” Borean explained. “Within the context of persistent low interest rates, the Group’s capital position remains solid.”
