Generali holds after the first quarter accounts: operating profit of 1.6 billion. Profit falls due to Russian devaluations

MILANO – Piazza Affari promotes Generali, with the stock (watch live) which moves in positive ground in the face of a weak list after the presentation of the quarterly accounts.

The Trieste insurance companies, affected by the recent tug-of-war in the assembly between the Caltagirone-Del Vecchio consortium which asked for discontinuity at the top and the list of the board of directors which, supported by Mediobanca, won all the votes, closed the first period of the year with “excellent profitability with premiums and operating income growing”, against an “extremely solid capital position” and a net profit that “was affected by the write-downs on Russian investments”.

The numbers say that as of March 31, the operating result is in the upper part of the consensus and stands at 1.62 billion (+ 1.1%) while net profits are 727 million: -9% on 802 million last year due to write-downs of 136 million on Russian assets. Without this impact, the profit would be 836 million, beyond analysts’ forecasts.

Gross premiums reached € 22.3 billion (+ 6.1%), an increase in non-life (+ 6.4%) and in life (+ 6%) while the solvency ratio stood at 237% (from 227% of end 2021). The combined ratio was 90.4% (+2.4 basis points).

Finally, as regards the 2022 outlook, the company underlines that “the global insurance sector could be affected by the uncertainty deriving from the slowdown in economic growth, the increase in inflation and the risks of escalation of the Russian invasion of Ukraine” but confirms the targets of the three-year plan.

“The first quarter results confirm the excellent performance of Generali, despite the scenario characterized by the uncertainty due to the conflict in Ukraine. The development of the business in the most profitable segments demonstrates the constant ability of the group to generate value, maintaining a capital position solid and at the top of the sector “, the group CFO Cristiano Borean said in a note commenting on the quarterly accounts. “In the first three months of the year, the group effectively launched the new ‘Lifetime Partner 24: driving growth’ strategic plan, based on strong earnings per share growth, higher capital generation and higher dividends,” he added. the manager, underlining that “the group continues to be supportive and close to the people involved in the conflict in Ukraine, in support of which it has created a 3 million euro emergency fund and a global fundraiser, launched among employees and through the Foundation the human safety net, to support Unicef ​​in its activities in favor of those who are suffering from the war “.

Due to the vicissitudes of the conflict, the company devalued its 38.5% stake in Ingosstrakh by over 200 million in the first quarter. It is explained by the accounts, in fact, that with reference to the group’s exposure to Russia, the value of the stake in the company was raised to 176 million (from 384 million at the end of the year) while the fixed income securities held directly by the group are been adjusted to 40 million (from 188 million). The group also has, in Russia and Ukraine, “indirect investments and financial assets connected to marginal unitlinked contracts, which amount respectively to 43 million (111 million at the end of 2021) and 34 million (117 million)”.

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