The group Generali closed the first half of 2017 with a Net income up 3,7%, to 1,2 billion euro, thanks to the "positive performance in all areas of operations". The Trieste company communicated it in a note. The Roe operating rate stood at 13,6%.
Also on the rise Operating income, to 2,6 billion (+4,1%), despite the context of low interest rates, thanks to the improved profitability of the Financial and Non-Life segments. On the front of financial solidity, the Regulatory Solvency Ratio stood at 188% at the end of the half year and the Economic Solvency Ratio at 207%.
“The first half results confirm the solidity of our business and the effective execution of the industrial transformation of Generali – commented the CEO of Generali, Philippe Donnet – We are achieving our financial objectives thanks to the dedicated determination, focus and commitment the implementation of the strategic plan which aims to make Generali `simpler & smarter`”.
According to Donnet, “the Combined Ratio at 92,9% and the New Business Value up by 52% with margin at 4,11% continue to confirm their excellent levels. The increase in Non-Life premiums and solid Life net inflows, always of higher quality, are the direct consequence of a decisive and disciplined approach to growth. The excellent implementation of the plan made it possible to achieve today's excellent results with a 3,7% increase in net profit, an operating ROE significantly above the target and an increase in capital-light products”.
I overall prizes of the generali group in the first half of 2017 amounted to 36,6 billion euro, slightly down (-0,8%) compared to the first half of 2016.
In particular, in Life, net inflows, decreased by 23%, however remained at "best in class" levels, exceeding 5,7 billion. The decrease, explains the press release, “reflects the decrease in France, Italy, Germany and China, mainly as a result of the trend in premiums. France and Italy are also affected by the trend in redemptions, which are also growing in Ireland”. Life premiums, equal to 25,3 billion, showed a drop of 1,8%.
“There is no concern for our Life business – remarked Donnet – which is characterized by strong growth, because net inflows of 5,7 billion in six months are very important, it is among the highest on the market, if not the highest. This means that we grow at a very high rate. Not only do we have growth, we have also improved the profitability of net inflows, because the value of our new business has increased to 942 million”, from 627 million in the first half of 2016, specified the CEO.
In Non-Life, premiums written increased to 11,3 billion (+1,5%), due to the growth in the Motor class (+3,7%), concentrated in particular in Germany, Central-Eastern European countries and America. The performance of the Non-Motor sector was also positive (+0,8%).
Il Operating income of the Life segment stood at 1,614 billion (-2,8%), while that of the Non-Life segment reached 1,095 billion (+0,7%). In terms of technical performance, the Combined Ratio settled at 92,9% and the New Business Value was up by 52% to 942 million with a margin of 4,11%.
The operating result of the Holding and other businesses segment improved from -102 million to 30 million euros.
- active assets under management of the group recorded an increase of 30% as at 2017 June 2,3, reaching 541,3 billion. In particular, total investments on the balance sheet amount to 482,1 billion, while assets managed on behalf of third parties amount to 59,2 billion.
Il net assets group assets amounted to 23,705 billion at the end of June 2017, down by 3,4% compared to the end of 2016 mainly due to the reduction in the reserve for profits attributable to financial assets available for sale for 713 million.
In the wake of the accounts, one hour from the opening the stock market share of Generali earn 1%, at 15,55 euros. This is the second best performance on the Ftse Mib.
DONNET: “SEPARATE US FROM UNICREDIT-MEDIOBANCA? IT'S ALREADY LIKE THIS"
"I understand that Mediobanca, Unicredit and Generali are already three separate companies, so I don't see any news". Thus Donnet commented on the rumors reported by the newspaper La Repubblica on a plan in the pipeline to "separate" the three realities, minimizing the cascading shareholdings which today see Unicredit hold 8,6% of Mediobanca and the latter in turn the 13% of Generali, and create three public companies. “I don't comment on press articles,” the manager truncated.
DONNET: “CARIGE BOND CONVERSION? GENERALI REMAINS A CREDITOR”
“We are a creditor of Carige and we remain a creditor of Carige,” said the CEO regarding a possible conversion into shares by the Trieste-based company of the Genoese bank's bond held in portfolio.
DONNET: "MPS-AXA BANCASSURANCE AGREEMENT DOES NOT CREATE US INCONVENIENCE"
“We will become shareholders of MPS and we will be focused on protecting our interests as shareholders”, continued Donnet, specifying that the bancassurance relationship between MPS and the French group Axa “is fine, it is part of the Bank's history. This doesn't make us particularly uncomfortable. We will see if there are opportunities for us”. Generali will become the second largest shareholder of MPS after the Italian state.
DONNET: "AT LEAST A BILLION FROM THE SALE OF INTERNATIONAL ACTIVITIES"
Donnet then added that Generali aims to obtain "at least one billion" from the sale of international assets envisaged in the strategic plan: "We are confident that we will be able to invest the proceeds in more profitable businesses and in markets with a performance more in line with our strategy. That's our goal."
