Generali posts continued growth in Q1 2024 results

Life and P&C contribute to increase in premiums

Generali posts continued growth in Q1 2024 results

Insurance News

By Kenneth Araullo

Generali Group reported continued growth in its operating results for the first quarter of 2024, supported by positive contributions from all business segments and a return to positive net inflows in the life segment.

Generali's gross written premiums rose by 21.4% to €26.4 billion, with notable performances in both the life and property & casualty (P&C) segments. Life net inflows returned to positive levels, reaching €2.3 billion, driven entirely by protection and unit-linked products. This aligns with the group's strategy and reflects the success of commercial actions implemented since 2023.

The operating result increased by 5.5% to €1,898 million, with contributions from all business segments. The life operating result grew by 4.9% to €969 million, and new business value (NBV) improved by 5.0% to €688 million.

In the P&C segment, the operating result increased by 2.4% to €867 million, benefiting from the consolidation of Liberty Seguros, which began in February 2024. The combined ratio stood at 91.0%, compared to 90.7% in the first quarter of 2023, due to a smaller benefit from discounting. The undiscounted combined ratio improved to 93.7% from 94.2% in the same period last year.

The asset & wealth management segment's operating result saw significant growth, reaching €263 million, an increase of 16.7%, driven by the strong performance of Banca Generali. The holding and other businesses segment reported an operating result of €-129 million, compared to €-130 million in the first quarter of 2023.

Generali Q1 20243 – net result, equity, and solvency ratio

The adjusted net result was €1,119 million, down from €1,229 million in the first quarter of 2023, which included a non-recurring capital gain of €193 million from the disposal of a London real estate development.

Excluding this effect, the adjusted net result would have increased by 8.0%. The net result grew to €1,256 million from €1,199 million, reflecting a €58 million net capital gain from the disposal of TUA Assicurazioni.

Shareholders' equity increased to €30.1 billion, up from €29.0 billion at the end of 2023. The contractual service margin (CSM) grew to €32.2 billion from €31.8 billion at the end of 2023. The group's total assets under management increased to €670.3 billion from €655.8 billion.

Generali confirmed its solid capital position with a solvency ratio of 215%, down from 220% at the end of 2023. The 5-percentage point decrease was mainly due to the acquisition of Liberty Seguros, along with negative regulatory changes and the dividend provision for the period, partially offset by strong normalised capital generation and positive market variances.

Generali Group CFO, Cristiano Borean (pictured above), said that the first quarter of 2024 saw continued growth in the operating result, supported by contributions from all business segments.

“The group achieved positive Life net inflows, built on our strategic decision to focus on protection and unit-linked lines and the commercial actions implemented during 2023,” Borean said. “The P&C segment also benefits from the consolidation of Liberty Seguros for the first time, an acquisition which is already contributing positively to the group’s earnings profile.

“Thanks to our diversified insurance and asset management model and solid capital position, driven by strong normalised capital generation, we remain fully on-track to meet all the targets of our ‘Lifetime Partner 24: Driving Growth’ strategy.”

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