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Generali Group posts best net profit and dividend in 8 years

Staff writer ▼ | March 18, 2016
Generali Group 2015 operating performance exceeded pre-financial crisis levels, whilst net profit and the dividend are the best in the past 8 years.
Generali Group
Generali Group   Operating result reached € 4,785 million
In spite of a challenging macroeconomic environment and low interest rates, the strategic initiatives undertaken by the group have created strong growth in production, excellent operating profitability and a further improvement in capital strength.

The group’s operating result reached € 4,785 million (€ 4,508 mln FY14), up by 6.1%, driven in particular by the P&C segment (+8.5%) and thanks to a solid result of the Life segment, in spite of the current situation of the financial markets.

The operating RoE, the main profitability target, consequently reached 14%, a significant increase compared to 2014 (13.2% FY14), amply exceeding the goal of remaining above 13%.

Net profit grew significantly to € 2,030 million (+21.6%; € 1,670 mln FY14), thanks to the improvement in operating and non operating performance, thus returning to pre-financial crisis levels. On the production front, the launch of new products and business initiatives boosted total premiums to € 74,165 million, up by 4.6% (€ 70,430 mln FY14): the increase was driven by the Life segment and by the recovery of the P&C segment.

Life premium income grew to € 53.297 million (+6.2%; € 49,813 mln FY14), thanks to the improvement of all business lines and the excellent performance of the main Countries where the group operates (Italy, France, Germany and CEE countries).

New production is stable in terms of APE at € 5,210 million (-0.2%), where the positive performance of the unit linked and protection policy products is offset by a decline in savings production, with business mix consequently shifting in line with our strategic ambitions.

Profitability (NBM) held firm at 21% (24% FY14) and, due to the decisive actions taken to improve the business mix and to the recalibration of guarantees, it was able to counteract the unfavourable scenario of low interest rates and increase in volatility recorded in the second quarter. The value of new production (NBV) reached € 1,097 million (-13%).

In the P&C segment, premiums grew by 0.8% to € 20,868 million (€ 20,617 mln FY14), through the growth of both the Non Motor line and the steady performance of the Motor line, which however experienced varied performance in the different countries where the group operates because of the strong competitive pressures.

The P&C business confirmed its very strong technical profitability, with a combined ratio which improved further to 93.1% (-0.6 p.p.) thanks to the decline of the loss ratio, in spite of the greater impact of catastrophic claims by € 75 million (+0.4 p.p.).

The reserving ratio remained stable at 154%. These results are accompanied by a strengthened capital position which the group continues to hold in a sharp focus. Shareholders’ equity grew 1.5% to € 23.6 bln. The Solvency I ratio is 164% (+8 p.p.; 156% FY14).

The group’s high level of organic capital generation drove an increase in the Economic Solvency Ratio to 202% (+16 p.p.; 186% FY14), as calculated under Solvency II principles.


 

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