Positive accounts for Generali in the first nine months of 2020: despite the impacts of Covid-19 (quantified at 125 million), the Operating income it increased to 4 billion (+2,3%) “due to the development of the Non-Life and Asset Management segments”. The group's net profit was less good (1,297 billion, -40%), penalized, however, by 310 million in net write-downs on investments deriving from the performance of the financial markets, of 183 million for the conclusion of the arbitration on the sale of BSI” and for other charges of 173 million (including the Extraordinary International Fund for the pandemic emergency and liability management). Net of these factors, profit would amount to 1,629 billion (-13%).
On the other hand, it improves Combined ratio to 89,7% (-2,8 percentage points) while i total gross premiums they amounted to 52 billion (+0,3%), with Non-Life premiums defined in a "resilient" note and a positive performance in the Life segment (+0,4%). Solvency strengthens to 203% (up nine points on 2020). As regards the guidance, the Generali group expects that its operating result continues to be resilient, although likely to decrease compared to 2019. Considering the negative impact deriving from the financial markets and some non-recurring charges recorded in the first nine months of the year, a lower net result is expected for 2020 compared to 2019.
On the dividend front, Generali confirmed the 2021 plan on the coupon policy: the Board of Directors examined the conditions for the distribution of the second tranche of the 2019 dividend approved by the Shareholders' Meeting on April 30, 2020, equal to € 0,46 per share, payable by the end of the year after verification by the Board. However, nothing will be done about it, given that the board of Generali "has taken note of the letter received from IVASS on 10 November 2020, in which the Supervisory Authority represented to the company that the application of the recommendation made by the European Committee for the Systemic Risk (ESRB) as at June 2020 and still in force with regard to the distribution of dividends is of a general nature and does not contemplate a case-by-case assessment, therefore deeming the Group committed not to proceed with the payment of the second tranche".
The Board therefore resolved to comply with the current requests of the Supervisory Authority and consequently to do not proceed with the disbursement of the second tranche for now of the 2019 dividend by the end of the year. “The results of the first nine months – commented the CFO of Generali, Cristiano Borean -, in particular the excellence of the technical margins supporting the operating result and the excellent balance sheet solidity, continue to demonstrate Generali's resilience. In a scenario still characterized by the heavy macroeconomic and financial repercussions caused by the persistence of the pandemic, the group confirms its strengths based on a leadership position in Europe and a predominantly retail, flexible and diversified business model. Generali has also continued to be an authentic Life Partner for its customers, thanks to specific help and assistance initiatives, and to support the communities in the main countries where it operates, including through the Extraordinary International Fund for Covid-19″.
