Generali earns 2,230 million in the first half of 2023, 60.9% more than the previous year

Generali, the largest insurer in Italy, earned 2,230 million euros in the first half of 2023, 60.9% more than in the same period of the previous year, which the company attributes to a diversification of profit sources and the amortization of investments in Russia, according to EFE.

“We are completely on track to achieve our objectives, which confirms that we have the necessary solidity to lead successfully in a complex macroeconomic and geopolitical scenario that is constantly evolving”, celebrated today the general director of the Generali group, Philippe Donnet, in the presentation of the results.

The substantial improvement in adjusted net profit was also the result of a “non-recurring gain related to the sale of a property development in London”, of €193 million net of taxes, as well as the amortization of “fixed income instruments registered in Russia”, for a value of 97 million.

Net profit was 2,243 million, more than double the 864 million in the first half of 2021.

Generali's consolidated operating result between January and June amounted to 3,721 million euros, 28% more year-on-year (it was 2,907 million in the first months of 2022), thanks also to the diversification of sources of income and the contribution of the acquisitions already made.

In this sense, Donnet mentioned the “recent acquisitions of Liberty Seguros and Conning”, which will strengthen the insurer's leadership in Europe and improve asset management, as promised.

Gross premiums amounted to 42,237 million euros, 3.6% more than in the same period last year, driven especially by the Non-Life (P&C) insurance sector, which grew 10.6% to 16,349 millions.

The Life segment, on the other hand, lost 0.3% in year-on-year terms to register a volume of 25,888 million.

“This evolution responds to the repositioning strategy of the group's life insurance portfolio, as well as the evolution of the banking sector in Italy and France,” the insurer justified.

The combined net ratio, which reflects the claims ratio plus expenses in relation to premium income, stood at 91.6%, a reduction of more than five percentage points compared to that registered in the first half of 2022, which reached 97%

Its business margin was 5.81%, similar to the 5.5% registered in the first months of 2022. Likewise, the group highlighted that it maintains an “extremely solid” capital position, with a solvency ratio of 228%.

“In the second half of 2023, the global insurance sector may be affected by uncertainty about the possibility of an economic slowdown, which may be offset by an expected reduction in inflation in the coming months,” Generali anticipated in its note.

For this reason, “simplification and innovation will continue to be key” in its operations, with the aim of “maximizing profitable growth, also after the purchase of Liberty Seguros”.