Generali closed 2022 with the best operating result ever, a net profit that without the impact of investments in Russia would have exceeded 3 billion euros and gross premiums on the rise. Numbers that have allowed the Trieste insurance giant to increase the dividend by 8,4% at 1,16 euros per share. "Generali's results confirm the success of our transformation journey, which is continuing with the disciplined and effective implementation of the Lifetime Partner 24: Driving Growth strategy", commented the CEO Philippe Donnet who during the conference call with the financial community added: “In a year marked by exceptional events, with the effects of the conflict having been widespread, we have continued to drive forward our transformation and growth. The group achieved its best operating result ever, with continued growth in premiums and net income. Today the group is more resilient and focused on growth".
Generali: record operating result, net income also grows
In the 2022 Operating income of Generali reaches an all-time high, rising by 11,2% to 6,5 billion euros driven by the exploit of the operating result of the segments Life (+25,1% to 3,522 billion) e Holding and Other Activities (+28,9% to 202 million) and the good performance of the segment Danni (+1,7%). As regards the other segments: the operating result of theAsset & Wealth Management stands at 972 million (-9,6%), that dthe Banca Generali to 334 million (-17,4%) and that ofAsset Management to 638 million (-5.%).
Il non-operating result it was negative by 1,710 billion (a worsening compared to -1,306 billion in 2021) and reflects, in particular: -511 million writedowns on investments classified as available for sale (-251 million in 2021), including Russian investments.
It grows by 2,3% to 2,912 billion euros the net profit which, excluding the impact of investments in Russia, would have reached 3,066 billion euros with an increase of 7,7%.
Il Combined ratio rises to 93,2% (+2,4% but weighs the effect of Argentine inflation) with a New Business Margin to 5,35% (+0,86%) while the capital position remains "extremely solid" with the Solvency Ratio to 221% (from 227% as at 31 December 2021). “The Solvency ratio shows our great solidity – explained Donnet – Furthermore, thanks to our initiatives, the sensitivity to financial markets has decreased, making us more resilient. A key figure is that the sensitivity to movements of 100 basis points on the Italian BTP has more than halved”.
Going forward with the data, the Assets Under Management group totals fell by 12,9% to 618 billion (-12,9%), while the net assets drops by 44,7% to 16,201 billion. “The change is mainly due to the available-for-sale reserves, especially as a result of the performance of bonds”, explains Generali.
La normalized generation of capital “it remains solid at 4,1 billion (3,8 billion in 2021) while i net cash flows for the holding company they amount to 2,9 billion (2,6 billion the previous year), "mainly driven by higher recurring cash remittances", says the Trieste-based company.
Generali: gross premiums up, life net inflows at 8,7 billion
They increased by 1,5% i gross premiums which in 2022 will reach 81,5 billion euros with strong growth in Danni (+9,8%), in particular in the non-motor sector. There Life net income dropped to 8,7 billion (-36,1%), while net inflows from unit-linked lines and pure risk and health lines stood at 8,9 billion and 5 billion respectively. The savings line recorded outgoing assets of 5,2 billion. They fell by 2,3% to 4,14 billion le technical reserves, "mainly reflecting the contraction of the unit-linked component, following the volatility of the financial markets", communicates the company.
“Thanks to a clear vision of the group's positioning as a global leader in the insurance and asset management sector, we are on track to achieve the objectives and ambitions of our strategic plan, pursuing sustainable growth which, even in an environment characterized by exceptional geopolitical and economic challenges, you create value for all our stakeholders. This allows us to offer our shareholders a further growing dividend, thanks to the constant increase in profits and the strong capital and financial position of the group" says the CEO Philippe Donnet.
Generali: the dividend rises by 8,4%
Generali has decided to increase the dividend of 8,4% per share € 1,16 per share, for a total maximum disbursement of 1,79 billion. The coupon will be paid starting from 24 May 2023 and the shares will be traded without the right to the dividend from 22 May 2023.
Plan targets up to 2024 confirmed
Thanks to the results achieved in 2022 Generali "confirm all goals of the strategic plan”, which is based – recalls the group – on a solid financial performance, an excellent customer experience and an ever greater social and environmental impact”. In particular, the group intends to pursue sustainable growth, improve the earnings profile and drive innovation to achieve a compound annual growth rate of earnings per share over the period 2021-2024 between 6% and 8%. , generate net free cash flows at the parent level in the period 2022-2024 in excess of €8,5 billion and distribute cumulative dividends to shareholders in the period 2022-2024 in the amount of between €5,2 and 5,6 billion.
The group from Trieste also underlines that “it will be important to evaluate at the same time the impact of signs of fragility of some American banks emerged in early March”. Furthermore, "given the inflationary context of 2022 which mainly affected the motor line, the group plans further tariff adjustments also to take into account the increase in cover costs on the reinsurance market".
“We always look for good M&A opportunities that create value for all stakeholders and are consistent with our strategic framework and financial discipline.” reiterated the CEO of Generali in a conference call, however, also pointing out how the scenario - for example in terms of interest rates - has changed a lot compared to the moment (December 2021) in which the 2024 plan was presented.
Answering a question about Silicon Valley Bank case, reported that there is no exposure, if not marginal and indirect, signaling "we are monitoring the level of solvency post 2022 results and we see a reinforcement of Solvency to 230% from 221% at the end of 2022".
In Piazza Affari, after the release of the accounts, the title General gains almost 4%, achieving one of the best performances of the Ftse Mib.
(Last update: 14.16 pm on 14 March).
