The Generali Group has published the quarterly report relating to the accounts for the first 9 months of 2023. Gross premiums up by 4,7% to 60,5 billion, operating profit up to 5,1 billion (+16,7%), normalized net profit up by 29,6% to 2,979 billion, Net income doubles to 2,822 billion compared to 1,455 billion in the first nine months of 2022, Assets Under Management (Aum) of the group equal to 625,3 billion, up by 1,6% compared to the whole of 2022. The Solvency ratio reaches 224% against 221% in FY 2022. These are the salient data communicated by the Generali Group in the first nine months of 2023 and disclosed before the opening of the stock exchange.
Generali quarterly: operating result and profit growing
Going into more detail:
- The Group's gross premiums grew by 4,7% a 60,4 billion, mainly thanks to the strong growth of the P&C segment. Life net inflows were down by 1,19 billion (+7 billion in the first 9 months of 2022) but with an "improvement in the third quarter trend compared to the previous quarters of the year and confirming resilient net flows in the unit-linked and pure lines risk and illness”, in line with the group's repositioning strategy in the Life sector.
- The operating result is increasing to €5.1 billion (+16,7%), "also thanks to the diversification of profit sources, which includes the contribution of acquisitions". The operating result of the Non-Life segment showed strong growth at 2,15 billion (+50,3%).
- The Combined Ratio improved to 94,3% (-3,1 pp), "thanks to the benefit of a lower loss ratio, mainly due to a greater effect of discounting, despite the significant impact of natural disasters".
- The Life operating result stood at 2,786 billion (-1,1%), with an improvement in 3Q2023 compared to 2Q2023. The New Business Margin is growing at 5,74% (+0,04 pp).
- The operating result of the Asset & Wealth Management segment grew to €728 million (+3,8%), thanks to the strong contribution of Banca Generali.
- The operating result of the Holding and other businesses segment improves to € -216 million (€ -249 million 9M2022).
- Group equity is increasing to €27,2 billion (+2,1% compared to FY2022).
- The Group's total assets under management amount to €625,3 billion (+1,6% compared to FY2022).
Generali quarterly: the Life segment
Gross premiums in the Life segment amounted to €37 billion (+0,9%). The savings line – specifies the Generali press release – is growing (+7,6%), driven mainly by Asia, Italy and France. The pure risk and health line is growing (+4,9%), in particular thanks to France and Italy, the unit linked line is decreasing (-12,2%), in particular in Italy and France, "also reflecting the strong performance at 9M2022”.
Life net inflows decreased by 1,19 billion. The pure risk and health line grows to 3,55 billion, led by France and Italy, and the unit linked line stands at 3,96 billion. The net outflows in the savings line (-8,7 billion) "are consistent with the portfolio repositioning strategy and also reflect the dynamics observed, in particular in the banking channel, in Italy and France".
La new production (expressed in terms of the present value of future premiums – PVNBP) stands at €30,13 billion (-8.6%), a partial improvement compared to the first half of 2023 (-14,0%), “thanks to the positive development of the new production in the third quarter. The reduction compared to 9M2022 reflects the unfavorable economic environment, amplified by the increase in interest rates”.
The profitability of new production on the PVNBP (New Business Margin) is confirmed at 5,74%, (+0,04 pp), also thanks to the increase in interest rates. The New Business Value (NBV) is equal to 1,7 billion (-8,0%).
Generali quarterly: the Non-Life segment
Gross premiums in the Non-Life segment are growing to 23,4 billion (+11,4%). There non-car line recorded strong growth (+10,1%), Europ Assistance's collection increased by 32,4%, thanks to the continuous growth of the travel line.
La car line grows by 12,9%, in the main geographical areas, with particularly positive trends in Italy, France, CEE and Argentina. “Excluding the contribution of Argentina, a country impacted by a context of hyperinflation, the segment's total premiums would record an increase of 5,1%,” specifies the Generali press release.
The Combined Ratio is equal to 94,3% (97,4% in the 9 months of 2022). "The natural disasters had an impact on the budget Combined Ratio of 3,7 pp, compared to 2,7 pp of the previous year, mainly due to the floods and hailstorms that occurred in Italy, CEE and Greece in the third quarter. Losses from natural disasters amount to 875 million and are equal to 837 million taking discounting into account.
The operating result is growing to 2,15 billion (+50,3%). The result of the investments is equal to 855 million.
Generali quarterly: Asset and Wealth management
Operating result of Asset & Wealth Management increased to 728 million (+3,8%) Operating result of the Banca Generali group increased to 340 million (+40,6%).
The comment of Generali's CFO, Cristiano Borean
“At nine months the Group continued to grow profitably, thanks to the strong increase in operating profit and net profit, despite the greater impact of natural disasters, confirming its resilience in a context that remains complex from a macroeconomic and geopolitical point of view. Generali is fully in line to successfully achieve all the objectives of the Lifetime Partner 24: Driving Growth strategy”. This is the comment of Generali's Group CFO, Cristiano Borean.
During the conference call with journalists, the manager gave some assessments on the impact of natural disasters: "We will have to take them into account - he said - for the calculation for the combined ratio between now and the end of the year", referring to what happened from October 100st till today. Even if there will be the positive effect of tariff increases, which will gradually come into force. “This is a particular year, we are already beyond the budgeted impact of over XNUMX million in the nine months and we will be even more so,” he concluded. In the nine months the impact of natural disasters for Leo is estimated at 875 million. The CFO confirmed the plan targets for 2024.
