24th May 2020

Generali net profit down at E113m(E744m) for first quarter but "good operating performance"

Generali reports first quarter financials-highlights are:
-The operating result amounted to E1,448m thanks to the contribution from the P&C and Asset Management segments, that also included the recent acquisitions, as well as from the Holding and other businesses segment. P&C technical profitability improved, with the combined ratio at 89.5 (-2.0 pps); the profitability of new Life business remained high at 4.04% (-0.35 pps); revenues from Asset Management continued to increase;
-Total gross written premiums stood at E19.2bn(+0.3%), with a positive development from the P&C segment(+4.0%). In the Life segment, net inflows amounted to E3.1bn(-25.2%) and technical provisions stood at E363.4bn(-1.6%), due to the current financial markets performance;
-Solid Group’s capital position with a Preliminary Solvency Ratio at 196%;
-The Group’s net profit stood at E113m(E744m at 1Q19) and was affected by E655m in net impairments on investments, due to the impact of COVID-19 on financial markets, and the contribution of E100m allocated by the Group to the Extraordinary International Fund for the pandemic emergency. -There was no contribution from disposals compared to a gain of E128m in the first quarter of 2019.
Generali Group cfo, Cristiano Borean, comments “In one of the most difficult and uncertain periods in recent decades, with the COVID-19 emergency and its consequent strong macroeconomic and financial impact, our business model has ensured the Group’s operating continuity and has allowed us to maintain our role as Life-time Partner to our customers. This is also the result of the ever increasing digitalisation of our processes and products, a multi-channel distribution network that leverages a global agent network, and international diversification. The first three months of the year showed a good operating performance and confirmed the Group’s solid capital position. Net profit was affected by impairments due to the current financial markets performance as result of the global pandemic.”

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