Generali (4.53% at 26.98 euros) occupies first place in the FTSE MIB, the Italian insurer having revealed an operational performance above expectations over the first 9 months of 2024. It benefited in particular from the dynamism of its activities life and asset management. “Looking ahead, we are on track to deliver the 'Lifetime Partner 24: Driving Growth' plan and are working on our new strategy which will be presented on January 30, 2025.” said financial director Cristiano Borean.
Over the first 9 months of the year, its net profit increased by 5% to 2.96 billion euros. Operating profit for its part increased by 7.9% to 5.4 billion euros, compared with a consensus of 5.15 billion. It benefited from the increase in profits from the life business (+8.9% to 3.035 billion euros) and from asset and wealth management (+20.1% to 837 million euros).
The operating profit of the damage activity, however, increased by 2.5% to 2.21 billion euros. Generali reported a 9-month combined ratio down 0.3 points to 94%. The lower this indicator is and less than 100, the more profitable the insurance business.
Increase in margin on contractual services
The margin on new business, a key indicator of the sector, fell by 1.28 points to 4.45%. The contractual services margin (CSM), which reflects the present value of expected future profits, increased by 1.9% to 32.405 billion euros.
The group's gross written premiums, corresponding to turnover, jumped 18.1% to 70.7 billion euros, supported by life insurance (+23.3%).
Regarding its financial strength, Axa's competitor ended the quarter with a Solvency II ratio of 209%, down 11 points since the start of the year.
As part of the strategic plan “Lifetime Partner 24: Driving Growth”, Generali targets an annual earnings per share growth rate of between 6% and 8% during the period 2021-2024 and cash flows above 8, 5 billion euros during the period 2022-2024.
