Moody’s Ratings has upgraded the insurance financial strength rating (IFSR) of Italian insurer Generali Group and its core European subsidiaries from A2 to A1. The outlook for the ratings remains stable.
The rating upgrade, four notches above the Italian sovereign rating (Baa2 stable), reflects a very strong business and financial profile, which significantly lowers its sensitivity to broader financial markets and macroeconomic conditions.
The rating action also applies to Generali’s core European subsidiaries in Italy, France, and Germany, all of which saw their IFSRs upgraded to A1 from A2 previously.
A key driver behind the upgrade is Generali’s ability to withstand a hypothetical domestic sovereign stress or default scenario, according to Moody’s
There are a number of factors bolstering this resilience, including Generali’s management of risk, keeping its exposure to Italian sovereign assets below 25% of its general account assets.
“Generali’s ratings are partly constrained by the Italian sovereign rating, driven by the group’s operating income and asset exposure to Italy, along with the domicile and debt issuance from its holding company in Italy. These factors are notably reflected in our assessment of Generali’s asset quality, capital and financial flexibility,” Moody’s stated.
Additionally, the insurer’s strong diversification outside of Italy helps buffer the group against economic downturns.
Moody’s said: “We consider Generali’s credit profile to be materially stronger than the credit profile of Italy, supported by the group’s very strong business profile, which benefits from leading positions in its chosen markets in Europe, diversification by business lines and relatively low product risk. The ratings also reflect Generali’s strong financial profile.”
Generali’s capitalization has remained broadly stable over recent years, with a strong Solvency II ratio of 219% as at year-end 2025.
Generali also continued to report strong earnings with a return on capital of around 7% (Moody’s estimate) in 2025.
The stable outlook mirrors the stable outlook of the Italian government, and reflects expectations that Generali will maintain the strength of its business and financial profile.
