Generali is reporting that its gross written premiums in Q1 2022 to €22.3bn, or 6.1%.
However, the firm said that its net result was down to €727m in the quarter, down from €802m in the preceding year’s same quarter. This, it said, had been impacted by impairments on its Russian investments amounting to €136m. Otherwise, Generali said its net result would have been €863m.
Broken down, the impact of the Russian invasion of Ukraine saw an impact of €96m because of fixed-income instruments held by Generali, along with €40m for its stake in Ingosstrakh.
Cristiano Borean, CFO of Generali Group, said: “The results for the first quarter confirm the excellent performance of Generali, despite a context characterised by uncertainty due to the conflict in Ukraine. The business development in the most profitable segments demonstrates the Group’s ability to consistently generate value, while maintaining a solid and industry leading capital position. In the first three months of the year, the Group also launched the new strategic plan ‘Lifetime Partner 24: Driving Growth’, focused on strong growth in earnings per share, increased cash generation and higher dividends.”
He added: “The Group will continue to stand in solidarity and remain close to the people impacted by the conflict in Ukraine, helping them thanks to an emergency donation of € 3m and a global fundraising campaign carried out by employees and through The Human Safety Net Foundation, to back UNICEF in its efforts to support those suffering due to this war.”
In terms of outlook, the firm said that an economic slowdown may lead to uncertainty in the global insurance sector, along with increased inflation and an escalation between Russia and Ukraine.
Regarding its objectives, Generali said: “In this context, the Group confirms and continues with its strategy to rebalance the Life portfolio to further increase its profitability, with more efficient capital allocation, also as interest rates continue to rise. Simplification and innovation will continue to be key, with the introduction of a range of modular product solutions, designed for the specific requirements and new needs of customers, and marketed through the most suitable, efficient and modern distribution channels.”
These latest results follow the firm posting a 63.3% in its net result for 2021.