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Generali sees lower 2020 operating profit

Christian Fernsby ▼ | May 21, 2020
Assicurazioni Generali said on Thursday it expected a resilient operating profit in 2020 but below last year’s level due to the impact of the coronavirus pandemic.
Assicurazioni Generali
Resilient   Assicurazioni Generali
Generali’s operating earnings, the most closely watched figure by the market, rose 7.6% from a year earlier to 1.45 billion euros (1.30 billion pounds) in the first quarter, above an analyst consensus provided by the company of 1.3 billion.

Topics: Generali

“There is a low visibility on the impact of the COVID-19 crisis. It will take a few months to have better visibility. However, our business mix is less exposed to segments most affected by the crisis than our rivals”, Generali General Manager Frederic de Courtois told a press briefing.

He added the company would assess the progress of its plans stretching into next year in an investor day in November.

Generali’s first quarter net profit fell 85% from a year earlier to 113 million euros, including 655 million euros of impairments due to the impact of the health crisis on financial markets, below analysts’ consensus forecast of 379 million.

The company’s solvency ratio, a key measure of financial strength, fell to 190% as of May 19 from 196% at the end of March and 224% at the end of last year. But it is still within the 180%-240% range indicated in the company’s strategy, Chief Financial Officer Cristiano Borean told the press briefing.