Generali, within the first quarter the working revenue rises to 1.9 billion. Vita returns constructive | EUROtoday

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Generali's board of administrators authorised the accounts for the primary quarter of 2024 which they see gross premiums growing to 26.4 billion (+21.4%), because of the segments Life, whose internet assortment returns to constructive for two.3 billion (it had been detrimental in the identical interval final 12 months for 190 million), and Non-Life. The Operating revenue rises to 1.9 billion (+5.5%), “thanks to the solid contribution of all business segments”, whereas thenormalized internet revenue it stands at 1.1 billion (-9%), however would have elevated by 8% excluding the non-recurring revenue of 193 million (internet of taxes) recorded within the first quarter of 2023 for the sale of an actual property complicated in London. Both premiums and normalized revenue beat the analyst consensus.
Il mixed ratio stands at 91%, up 0.3 share factors in comparison with a 12 months in the past, whereas the Solvency Ratio it fell barely to 215% (from 220%), a decline that displays the acquisition of Liberty Seguros, which the Trieste group started consolidating in February. Finally, Generali confirms the targets of the commercial plan which is able to conclude on the finish of the 12 months.

Life internet inflows return to constructive, however margins decline

Generali's working consequence within the first quarter subsequently grew to 1,898 million (+5.5%), «with the constructive contribution from all enterprise segments». The Life working consequence elevated to 969 million (+4.9%) whereas the Non-Life working consequence reached 867 million (+2.4%), additionally because of the contributed by Liberty Seguros, consolidated ranging from February 2024. A contribution which by way of non-life assortment might be quantified at 220 million and by way of working revenue at 19 million. However, margins on new Life enterprise are falling: Trieste specifies that the New Business Margin stands at 3.94% (-1.79 share factors in comparison with a 12 months in the past). «By neutralizing the accounting impact of the pure French collective danger and sickness enterprise, the discount in margins would have been halved roughly to -0.9 share factors. In addition to this impact, the discount primarily displays the initiatives to help internet funding in Italy, the impact of decrease rates of interest and a higher weight of China”, underlines a note.

The operating result of the Asset & Wealth Management segment recorded significant growth to 263 million (+16.7%), «thanks to the strong performance of Banca Generali», while that of the Holding and other activities segment stood at -129 million (- 130 million a year ago). A particular focus goes to Life, which had suffered in 2023 and whose net collection is therefore positive again for 2.3 billion. Gross premiums grew sharply to 16.9 billion (+28.4%). «A positive trend was recorded in all business lines, with a particularly strong performance in the savings line (+52.5%) in Italy and France, which reflects the commercial actions implemented since 2023, as well as in China», underlines the company . The pure risk and illness line confirmed solid growth (+9.6%) in most countries. Growth was also observed in the unit-linked line (+8.6%), in particular in the main markets represented by France, Italy and Germany.

CFO Borean: «Solvency at 217%, no room for new M&A»

In mid-May, the Generali's Solvency Ratio had risen slightly to 217%, compared to 215% at the end of March, but there will be an impact of one point linked to the buyback plan which will start tomorrow to serve the group's LTI plan and for a total of 11.3 million shares (maximum 300 million euros) . Group CFO Cristiano Borean specified this in a conference call with journalists. Who – upon specific question – also underlined that once the buyback yes 500 million approved by the last meeting and the aforementioned share buyback, Generali will no longer have cash margins to make acquisitions. «At that point – he concluded – we will have 1 billion liquidity buffer which we always prefer to maintain for risk management reasons.”

“The growth of Generali's operating result continues in the first quarter of 2024, thanks to the solid contribution of all business segments”, Borean additionally highlighted in a word connected to the primary quarter outcomes. «In the Life section the Group achieved constructive internet inflows, because of the strategic decisions centered on the pure danger and well being and unit-linked traces and due to the industrial actions carried out throughout 2023. The Non-Life section additionally advantages from the consolidation of Liberty Seguros, an acquisition that’s already contributing positively to the Group's earnings profile”, added the manager, underlining that “because of the diversified insurance coverage and asset administration mannequin and the stable capital place, pushed by the robust normalized capital technology, we’re totally in line to efficiently obtain all of the aims of the 'Lifetime Partner 24: Driving Growth' technique.”