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Generali result up 63%, with growth across segments

15th March 2022 - Author: Matt Sheehan

Italian insurer Generali has posted a 63.3% growth in its net result year-on-year, finishing 2021 with a figure of €2,847 million, compared to €1,744 million previously.

generaliThe performance was aided by positive growth across all business segments with strong technical profitability across both life and property and casualty (P&C) business.

Generali’s operating result similarly grew 12.4% to €5.9 billion, as total gross written premiums grew 6.4% to € 75.8 billion, up by 6.0% in the life segment and 7.0% for P&C.

Looking at the life segment specifically, the operating result grew by 7.2% to € 2,816 million thanks to improvements in both the technical margin and the investment result, although the technical margin was reduced by €119 million due to the COVID-19 pandemic, resulting from higher claims in the protection line.

For P&C, meanwhile, the operating result of the segment increased by 7.9% to € 2,650 million, with a slight deterioration in technical result and combined ratio offset by improvement in the financial result.

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Generali’s overall new business margin was 4.52% while the combined ratio came to 90.8%, which Generali says is the “best and least volatile” among its peers.

The non-operating result, however, was a loss of €1,306 million,partly due to the establishment of the Extraordinary International Fund launched by the Generali to deal with the Covid-19 emergency in support of national healthcare systems and the economic recovery, further local initiatives in the main countries of operation and, in France, an obligatory contribution to the national healthcare system requested of the insurance sector.

“The excellent results we present today mark the successful conclusion of the ‘Generali 2021’ strategic plan, demonstrating once again that we deliver on our promises,” said Generali Group CEO Philippe Donnet. “Generali is now best-in-class in terms of its capital position, profitability and growth, it has strengthened its presence in high potential markets and grown its asset management business.”

“We are now effectively implementing our new strategy ‘Lifetime Partner 24: Driving Growth,’ focused on sustainable growth, an enhanced earnings profile and the creation of value for all stakeholders. A rigorous and disciplined capital deployment approach, sustainability fully embedded into the business and increased investment in technology and digital transformation will be key drivers of our new plan’s success,” Donnet continued.

“Finally, it is impossible not to mention the crisis in Ukraine. As with the Covid-19 pandemic, Generali and its employees have taken immediate action to help refugees. Our Group has historic ties with Central and Eastern Europe and will continue to support the communities impacted by the war.”

Generali recently announced plans to close its Moscow office, resign its positions on the board of Ingosstrakh, and wind down its Europ Assistance business due to Russia’s invasion of Ukraine.

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