In the first half of 2024 Generali confirmed its financial solidity with a growing operating result, thanks above all to the positive contribution of the Life and Asset & Wealth Management segments. The Operating income of the group reached 3,7 billion euros, marking an increase of 1,6% compared to the same period of the previous year.
I gross premiums increased by 20,4%, reaching 50,1 billion euros, thanks to the strong development of Life segments (+ 26,6%) and Danni (+10,5%). There net life collection was particularly positive, marking 5,1 billion euros, a clear improvement compared to the negative figure of the previous year.
THEnormalized net profit is 2 billion euros, down from last year but due to non-recurring profits and other extraordinary events recorded in the first six months of 2023. Excluding these effects, net profit would have remained stable.
Generali continues to show a solid capital position, with a Solvency Ratio of 211% as of June 30, 2024, down slightly from the 220% recorded at the end of 2023. This includes the acquisition of Liberty Seguros and the launch of a €500 million buyback program.
Asset & Wealth Management, experiencing strong growth
One of the most relevant aspects of the half-yearly results concerns the performance of the Asset & Wealth Management segment, which registered a growth of 19,4%, bringing the operating result to 566 million euros. The increase was driven by the positive performance of Banca Generali, which saw its operating result grow by 33,8% to 311 million euros, thanks to the improvement in the net interest margin and the diversification of profit sources. Asset Management also benefited from the contribution of Conning Holdings Limited (CHL), recently acquired, with an operating result growing by 5,5% to 255 million euros.
- Assets Under Management (AUM) of the Group increased significantly by 25,2% to €821 billion, mainly reflecting the inclusion of CHL's AUM.
The life and non-life classes also performed well
In Life segment, Generali registered strong growth in gross premiums, equal to 32,7 billion euros (+26,6%), driven by the positive performance of all business lines, in particular the savings line (+41,6%) and the unit-linked line (+17,8, XNUMX%). There Life net income was very positive, with a balance of over 5,1 billion euros, a clear improvement compared to the previous period. The value of new business (NBV) increased by 3,7%, reaching 1,3 billion euros, thanks to the higher volumes recorded.
Even in Non-Life segment, Generali showed good resilience, with gross premiums growing by 10,5%, reaching 17,4 billion euros. However, the segment's operating profit contracted by 6,7% to 1,7 billion euros, due to the increased frequency of natural disasters and the reduced benefit of discounting. The Combined Ratio stood at 92,4%, an increase of 0,8 percentage points.
Generali: 500 million buyback announced
Generali will launch a buyback program from August 12 to December 2024, with a maximum of 500 million euros to repurchase up to 3% of the capital. This program, part of the “Lifetime Partner 24: Driving Growth” strategic plan, aims to offer shareholders extra remuneration in addition to dividends, using accumulated resources from 2022 to 2024. The repurchased shares will be canceled without reducing the share capital.
Outlook 2024
Looking ahead to the second half of 2024, Generali is preparing to face an economic context marked by the decisions of the main central banks, like the Fed and the ECB, regarding interest rate cuts. Despite geopolitical uncertainties and market volatility, the Group remains focused on its strategy to rebalance the Life portfolio to improve profitability and on expansion into high-potential markets in the Non-Life segment.
Donnet: “Results confirm Generali's resilience, our evolution continues”
“Thanks to the continuous growth of the operating result and the return to strongly positive net flows in Life, our results confirm Generali's resilience, the effectiveness of our strategy and the ability to generate value for all stakeholders even in a complex macroeconomic and geopolitical context. Our evolution continues as global player in the insurance and asset management sector thanks to an increasingly diversified business profile. The absolute focus on cash generation and financial solidity allows us to launch the 500 million euro buyback, demonstrating our commitment to increasing shareholder remuneration. A few months after the conclusion of the 'Lifetime Partner 24: Driving Growth' plan, we are fully on track to achieve all its ambitious objectives, thanks to the commitment of all our colleagues and agents. In the coming months, I will continue to work together with our top management on the new Group strategy, which we will present at the Investor Day on 30 January 2025 in Venice" commented the CEO of Generali, Philippe Donnet.
