Generali closes on first quarter 2020 with profit of 113 million euros, against the 744 million recorded in the same period last year. Three factors weigh on the data: 655 million of net writedowns on investments caused by the coronavirus effect on the financial markets; the contribution of 100 million allocated by the group to the Extraordinary International Fund for the pandemic emergency; the absence of proceeds from disposals, which between January and March 2019 had instead yielded 128 million in capital gains.
As regards the Operating income, Generali recorded growth of 7,6%, to 1,448 billion, primarily thanks to the contribution of the Non-Life (+14,6%) and Asset Management (+32%) segments, which also benefited from the recent acquisitions.
I gross premiums overall did not register significant changes (+0,3%, to 19,2 billion), but the performance was positive in the Non-Life business (+4%) and negative in the Life business (-1,6%).
On the equity side, Generali's position remains solid, with a Preliminary Solvency Ratio at 196%.
"In one of the most difficult and uncertain periods of recent decades, characterized by the Covid-19 emergency, with heavy macroeconomic and financial repercussions - comments the CFO of Generali, Christian Borean – our business model has ensured the operational continuity of the Group and has allowed us to play the role of Lifetime Partner for our customers without interruptions”. The manager underlines in particular three competitive factors of the group: the advanced digitization process, the multi-channel distribution network and international diversification.
Looking ahead, according to Generali it is still "too early" to assess the impact of the coronavirus pandemic on the global insurance industry, however the group expects a “resilient” operating result in 2020, even if the decline compared to 2019 will be inevitable.
Finally, the payment of the second tranche of the dividend, expected in the autumn, will arrive after an "assessment by the board in compliance with our risk capital framework, a stringent group capital requirement, in light of its evolution and that of the business as at 30 September - Borean said again - All conditions will be evaluated, we are currently complying with our risk capital framework”.
