(AOF) – While Italian insurer Generali revealed solid nine-month results broadly in line with expectations and confirmed the goals of its strategic plan, it also sent a warning signal about the sector’s outlook. “In a context still characterized by mixed data on labor markets combined with weaker demand, there are increasing signs of a possible slowdown in the global economy, which could affect the insurance sector,” She warned the generals.
In the first nine months of the year, its net profit almost doubled (+94%) and reached 2.8 billion euros. Operating profit increased by 16.7% to EUR 5.1 billion, compared to the consensus of EUR 5.04 billion. It benefited from a strong increase in property and casualty profits: +50.3% to €2.16 billion.
Generali reported a nine-month combined ratio down 3.1 points to 94.3%. The lower this indicator is and less than 100, the more profitable the insurance business is.
However, operating revenues in life insurance fell by 1.1% to 2.79 billion euros. New business margin, a key indicator of the sector, increased by 4 basis points to 5.74%. Contract services margin (CSM), which reflects the present value of expected future profits, increased by 3.7% to €31.33 billion.
Gross prescribed insurance groups corresponding to turnover increased by 4.7% to 60.5 billion euros, to which property and casualty insurance also contributed (+11.4%).
In terms of financial strength, Axa’s competitor ended the quarter with a Solvency II ratio of 224%, an improvement of 3 points from the end of 2022.
Commenting on the results, CFO Cristiano Borean said Generali is part of it “the right way” achieve all the goals of its strategic plan “Lifetime Partner 24: Driving Growth”.
Generali targets an annual growth rate of earnings per share between 6% and 8% during the period 2021-2024 and cash flows above EUR 8.5 billion during the period 2022-2024. Finally, the insurance company plans to distribute cumulative dividends to shareholders in the amount of EUR 5.2 billion to EUR 5.6 billion during the period 2022-2024.
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