Italian insurance giant Generali has announced a 5.5% increase in operating profits, reaching €1.9 billion in the first quarter of 2024. This growth is attributed to robust performance across all business divisions, particularly in the property-casualty insurance sector.
The company’s adjusted net profit for Q1 2024 was €1.1 billion, a 9% decline from the €1.2 billion recorded in the same period last year. However, gross written premiums surged by 21.4% to €26.4 billion, driven primarily by gains in the property-casualty and life insurance divisions.
Life insurance net inflows totaled €2.3 billion, spurred by increased activity in unit-linked and protection life insurance plans in France and Italy. Pension and savings outflows decreased compared to the previous year. The life insurance operating profit rose to €969 million from €924 million in Q1 2023.
The property-casualty insurance sector also performed well, with an operating profit of €867 million, up from €847 million the previous year. The asset and wealth management division saw its operating result climb to €263 million, compared to €225 million last year.
Generali reported improvements in new business volumes, particularly in Italy, which saw a rise in savings plans, and in France, which experienced increased hybrid sales. Additionally, regulatory changes in China led to unprecedented volumes in Q1, although this spike is expected to be short-term as markets adjust to the new laws.
The group’s shareholders’ equity stood at €30.1 billion, with total assets under management rising to €670.3 billion. The solvency ratio was reported at 215%, slightly affected by the recent acquisition of Liberty Seguros.
Generali’s CFO, Cristiano Borean, stated: “In the first quarter of 2024, Generali delivered continued growth of its operating result, thanks to the solid contribution of 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. 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.”
