Three consecutive years of historic records, with strong growth in premiums, operating income and net income and a decidedly solid capital position.
It is on these data that the outgoing Assicurazioni Generali Board of Directors placed its approval on Monday, under the chairmanship of Gabriele Galateri di Genola, approving the consolidated financial statements and the draft financial statements of the Parent Company for 2021 and starting to propose to the shareholders meeting next April 29 the distribution of a dividend equal to 1,07 euro per share, in line with expectations, with coupon detachment on May 23rd.
Generali, record profit and operating result at all-time highs
The Group's operating result recorded an all-time record for the third consecutive year of 5.9 billion euros (it was 5,2 billion at the end of 2020) thanks to the contribution of all business segments.
I gross premiums saw an increase of 6,45 to 75,8 billion (+6,4%), with the increase in both Life branch (+6,0%) and by damage branch (+7,0%) which brought with it a technical profitability expressed in New Business Margin up 0,57 percentage points to 4,52% and a Combined Ratio among peers to 90,8% (+1,7 pp).
THENet income was up 63,3% to €2,847 billion, with normalized net income - defined as net income without the impact of capital gains and losses from acquisitions and divestments – amounting to €2,795 billion and does not include the €52 million relating the transaction for the acquisition of control and the extraordinary costs linked to the integration of the Catholic group.
THEearning per share was 1,78 euros. The consensus of analysts – published on the Generali website – indicated a final result of 2,82 billion euros, with a range between 2,65 and 3,18 billion euros.
Substantial capital position, clearly growing
The Group confirmed a substantial capital position with the Solvency Ratio at 227%. The increase compared to the 2020 position (224%) "is attributable to the very positive contribution of the normalized capital generation of € 3,8 billion and to the favorable performance of the financial markets, which more than offset the negative impacts deriving from the exchange regulations, from M&A transactions and from the accrual of the dividend for the period” says the note.
Il net assets of the Group stands at € 29.308 million down 2,4% mainly due to the "result for the period attributable to the Group, more than offset by the distribution of the dividend and other profits or losses recognized in equity", while the RoE it stood at 12,1% (+4,4 pp).
Generali, profit on the rise for the three-year period 2021-24
For the future, the group intends to pursue sustainable growth, improve the profit profile and drive innovation according to the strategic plan "Lifetime Partner 24: Driving Growth".
The intention is to achieve a compound annual growth rate in the period 2021-2024earning per share between 6% and 8%, to generate Cash Flows net assets available at Parent Company level in excess of 8,5 billion and to be distributed to shareholders dividends accumulated for an amount between 5,2 and 5,6 billion, with a ratchet policy on the dividend per share.
The Board of Directors has also resolved a capital increase, equal to 5.524.562 euros, in implementation of the long-term incentive plan "Long Term Incentive Plan 2019-2021" and to submit the proposal of the long-term incentive plan "Long Term Incentive Plan 2022" to the Shareholders' Meeting for approval -2024”, supported by a program of buyback at the service of the plan.
Finally, the Board of Directors resolved to propose the new plan employee share ownership of the Generali Group, with which it will be possible to purchase ordinary shares of the Company from a buyback program at favorable conditions.
Generali: the list of the board of directors with 13 directors, women's share at 54%
On Monday, the board also presented the own list of 13 advisers for the renewal of the board, with Andrea Sironi, independent, co-opted on February 28, 2022, indicated as Chairman, Philippe Donnet, proposed as CEO for the third term.
Among the new names there are Clara Furse, the first female president of the LSE and the 41-year-old startupper Umberto Malesci.
And then again Clement Rebecchini, non-independent, current Deputy Chairman, director since 11 May 2012, Diva Moriani, independent, director since 28 April 2016, Luisa Torchia, independent, co-opted on 28 February 2022, Alessia Falsarone, independent, co-opted on 28 February 2022, Lorenzo Pellicioli, non-independent, director since 28 April 2007 e Antonella Mei-Pochtler, independent, director since 7 May 2019
The list of candidates – to be presented to the shareholders' meeting for the renewal of the board for the mandate expiring with the approval of the financial statements as at 31 December 2024 – shows 54% women's shares, while 77% have no direct ties to the company and the average age is 56,5 years.
“The list of the BoD that we approved today expresses excellent skills and professionalism at an international level and confirms the validity of a transparent selection process, also capable of responding to all those rigorous needs that investors have indicated during the dialogue activities with them - commented the president Gabriele Galateri of Genola – I am convinced that the candidates on the list will be able to accompany Generali along the path outlined by the new Lifetime Partner 24: Driving Growth strategy and to better manage the global challenges that a large insurance group like ours will have to face in the coming years".
The candidates were selected on the basis of the criteria that the Board itself adopted, on the opinion of the "ad hoc" Appointments Committee and also in compliance with the indications contained in the "Orientation opinion for shareholders", approved on 16 February by the Board of Directors and published on the company's website, they announced from Trieste.
