It was just about a month ago that the insurance world seemed to be swirling around Generali. The Italian insurance giant was rumoured to be at the centre of a succession of takeover bids and interest from the likes of Allianz and Intesa. With a cost cutting drive also announced, and the firm offloading a subsidiary in the Netherlands, you might have thought Generali was in trouble – deep trouble.
However, if its latest set of results are to be believed it seems nothing could be further from the truth.
The company has today announced a record operating result at more than €4.8 billion with life up 5.5% and property and casualty insurance up 2.9%. It was the company’s best performance ever while its net profit and dividend are the highest for the last nine years.
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Its net profit reached €2.081 billion, but on the production side gross written premiums actually slipped back by 3.9% to €70,513 million. In the property and casualty segment, premiums grew by 2.1% on a like for like basis to €20,783 million, thanks to the growth recorded in the Motor line (+4.3%) as well as in the non-motor line (+0.5%).
Speaking about the results, Generali Group CEO Philippe Donnet pointed to early success from its cost cutting drive which was announced in November and hinted at the firm retaining its independence.
“We will build further on these achievements and we have the best possible team to accelerate the execution of our current strategy. Moreover, Generali can count on a unique distribution model of more than 150 thousand dedicated agents and salespeople around the world, who ensure a closer relationship with clients based on trust, expertise and understanding,” he said.
“This, together with the unparalleled level of pride and passion of all Generali employees, is an incredible asset which underpins our success at all times.
“We are proud of these results, but we consider them only a first step in a journey to become best insurance company for clients, distributors, employees and investors and we look to the future with confidence, as an independent, Italian, international group.”
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