Satisfactory accounts for Generali, which are also convincing the Stock Exchange (stock in positive territory at the opening of the session in Piazza Affari), above all on three fronts: that of record-breaking operating result, and then a profit and a dividend proposed to shareholders who are also growing. The driving force behind the business, while net inflows are down (to 9,7 billion, of which 60% in Italy) but less than the national level and remains among the highest on the market, is the value of Life products, increased by 54% to 1,8 billion.
“Excellent results - commented the managing director Philippe Donnet at the press conference - which confirm the validity of our strategy, which we launched two years ago and are following with great discipline. We are increasingly confident in our ability to complete the industrial plan in 2018". The French manager wanted to point out the pillars of performance: record operating result at 4,89 billion, net profit exceeding 2,1 billion with +1,4% and a dividend per share of 0,85 euro, up 6% compared to 2016. “Life gives us great satisfaction but that's not all – said Donnet -: also wealth management with Banca Generali which made an excellent performance, and asset management rose by +81%. Let's not forget the cost reduction: already in 2017, two years ahead of schedule, we cut costs by 200 million".
“They also weighed on the results exceptional events, some positive and some negative: the balance was negative but net of this our business is improving considerably”. The extraordinary events were: restructuring costs in Germany for 174 million, a pre-tax gain in the UK for the sale of a portfolio for 196 million, 92 million in extraordinary taxes in France and the USA, and a negative impact of 217 million from other operations.
Donnet then answered some questions, such as the one about Generali Leben, the group's business in Germany: “Generali Leben is only a part of Generali in Germany. In 2017 we reorganized the German market with the aim of strengthening our position and increase efficiency. We had announced the run off of Leben, it was done, now we are evaluating two ways: internal management or sale. We are getting close to a decision”, replies the CEO without however specifying when but revealing that the target of 1 billion euros in income from disposals will probably be exceeded by Generali.
Regarding acquisitions, Donnet said that “Generali is both opportunistic and disciplined. We have three core businesses: Non-Life, Life, Asset & Wealth Management. We have no intention of getting into the reinsurance business. We will be consistent with our strategy." On the possible agreement with Poste Italiane, very launched on the insurance market: “The agreement with the Post Office interests us, we could be a good candidate for a partnership with them. If they are interested we are available”.
On the risk of instability after the elections, precisely on the day when Salvini opened up to the 5 Star Movement the spread shot up, the number one of the Generali group expressed very little concern: "We work in more than 50 countries, sincerely politically it is not Italy that worries me the most. It is a democracy with solid institutions, capable of guaranteeing the country's stability even within Europe. Elections are not a risk, elections are a normal thing in a democratic country. No fear".
