Generali ha exceeded all plan targets strategic “Lifetime Partner 24: Driving Growth”, recording results defined as “excellent” by CEO Philippe Donnet. The Trieste-based insurance giant has closed 2024 with a normalized net profit of 3,8 billion euros (+5,4%), the highest in the history of the Group, and a Operating income record of 7,3 billion euros (+8,2%), driven by all business segments, with a significant contribution from Asset & Wealth Management. However, theNet income overall recorded a slight decrease to 3,7 billion euros (-0,6%) compared to 3,75 billion the previous year, a figure that had benefited from capital gains deriving from disposals.
The Lion will propose a dividend per share of 1,43 euros (+11,7%). The coupon will be detached on Monday 19 May 2025, with payment starting from 21 May 2025. The total amount paid will be 2,17 billion euros. With a Generali share price of 31,9 euros (12 March 2025), the dividend yield stands at 4,48%.
A swinging morning for Generali who at business square, in a list mostly colored in red with the Ftse Mib giving up 0,04%, it started off in decline and then turned positive and in the late morning it moved to parity (+0,03% at 31,91 euros per share, after the minimum at 31,64.
Donnet, we have not brought forward the meeting date, it has always been held at the end of April
Furthermore, the company's board of directors, which met yesterday, decided to bring forward the meeting from May 8th to April 24th. “We have not brought forward the date of the meeting, I arrived at Generali 12 years ago and the meeting has always been in Trieste by the end of April“. This is how the CEO of the Lion responds, Philippe Donnet, asked at a press conference about the postponement of the meeting from May 8 (initially set by the financial calendar) to April 24. In reality, the top manager specified, "we had decided to postpone it to May 8 with the hope of receiving by the end of March the legislation related to theArticle 12 of the Capital Bill (the one for the presentation of the board of directors list, ed). Since we no longer have any hope of receiving the legislation on time, we have returned to the end of April". The appointments at the top, with Philippe Donnet supported by Mediobanca and challenged by Caltagirone e Dolphin, will depend on the decisions of Assogestioni e Unicredit, making the assembly one of the most decisive in recent years.
Donnet: Mediobanca list for board of directors at the end of the month, I confirm my availability
“We have to wait for the end of the month to know the list of the shareholder, I do not comment on his work. I can only confirm my availability to working together to my colleagues on the new strategic plan, which is even more challenging" said Donnet, asked at a press conference about possible contacts with Mediobanca, First member of the Lion, which will present a list for the renewal of the board of directors to be examined at the meeting on April 24th.
Also questioned about the possible Unicredit's role, which could become the deciding factor after rising to 5,2% of the Trieste-based company, and on possible shareholder reorganizations, the top manager stressed: "Since I became CEO, nine years ago, I have always heard talk of takeovers. When I arrived, however, the capitalization was 15 billion and now it is 50 billion. And this is due to the successful implementation of our strategic plans, the next one will create further value".
Donnet: we are evaluating an increase in BTP purchases
On the subject of asset allocation, Generali is considering increase its purchases of BTPs, “obviously in line with our investment policy and our risk tolerance” said Donnet, during the press conference, underlining that today the group has allocated to Italian government bonds 35,6 billion, “an important part of our investments” that “considering the current market trend and the positive net life collection, we are evaluating to increase”. “We have about a third of the assets in Italy, we are for the most part an Italian life insurance and we have Italian liabilities”, added the top manager, underlining how it is this mechanism that guides investments in BTPs. Regarding the possibility of a different allocation in Generali’s portfolios, Marco Sesana, General Manager of the Group, said that the aim will be to increase the private market and limit government bonds instead. Except for BTPs.
Generali, 2024 accounts: growth in premiums and net collections
I gross premiums reached 95,2 billion euros (+14,9%), thanks to the growth of Life segments (+ 19,2%) and Danni (+7,7%). Net collection of life insurance stood at 9,7 billion euros, with a clear preference for unit-linked products and pure risk and health policies. New Business Value grew to 2,4 billion euros (+2,3%).
The Life segment saw its Operating income rise to 3,98 billion euros (+6,6%), while the Damage sector reached 3,05 billion euros (+5,1%), maintaining a Combined ratio stable at 94%. The Combined Ratio not actualized showed an improvement of 0,8 percentage points (95,9%). In the sector Asset & Wealth Management, the operating result jumped to 1,18 billion euros (+22,6%), driven by the growth of General Bank (operating profit reached 560 million euros, +27,6%) and from the consolidation of Conning Holdings Limited (CHL).
Il net assets increased to 30,4 billion euros (+4,9%), while the Assets Under Management (Aum) recorded a 31,6% jump to €863 billion, thanks to positive net inflows and the integration of Conning Holdings Limited (CHL). The Solvency Ratio drops to 210% (from 220% at the end of 2023), and mainly reflects the acquisition of Liberty Seguros and the €500 million buyback completed in 2024.
Words from CEO Donnet: “Stronger than ever”
“The Group is now in its strongest position ever, as demonstrated by the operating result and normalized net profit at record levels: a milestone that we have achieved thanks to the commitment and passion of our people and our distribution network,” Donnet added. “We continue on the path of transformation and diversification of the Group into a global integrated leader in insurance and asset management and are now fully focused on accelerating the pursuit of excellence. Our new ambitious plan 'Lifetime Partner 27: Driving Excellence' will deliver strong earnings growth, solid cash generation and increased shareholder remuneration, thanks to the further development of AI and data that will allow us to intercept the ever-changing needs of customers and the opportunities arising from emerging trends.”
A look to the future: estimates for 2025
With these results, Generali looks to the future with the new strategic plan Lifetime Partner 27: Driving Excellence, focusing on earnings growth, innovation and maximum customer focus. Over the next three years, the Group expects earnings per share to increase by 8-10% annually and over 11 billion in cumulative net cash flows. The focus will be on profitability in the Life segment, profitable growth in P&C and strengthening in Asset & Wealth Management, with targeted investments and strategic expansion. In addition, Generali confirms its commitment to shareholders with over 7 billion in cumulative dividends and a buyback program of at least 1,5 billion euros.
Update at 11.30
