Italian insurer Generali has reported a 5% year-on-year increase in its net result to €3 billion for the first nine months of 2024, as gross written premiums (GWP) across the group rose 18% to €70.7 billion amid strong growth in both P&C and life.
Group-wide, Generali’s 9M 2024 consolidated operating result increased from €5 billion to €5.4 billion, driven by a 2.5% rise in the P&C operating result to €2.2 billion, a 9% rise in the life operating result to €3 billion, and an improved asset and wealth management result of €837 million.
Within the firm’s P&C business, GWP increased 10% year-on-year to €25.1 billion, driven by 6.2% growth in non-motor and 16.9% growth in motor.
The segment’s loss ratio rose slightly to 65.5% and the expense ratio declined to 28.5%, resulting in a slightly improved combined ratio of 94% for 9M 2024 compared with 94.3% last year, despite a significant impact from natural catastrophes at 3.8%, or €930 million. The firm’s cat losses were driven by adverse weather events in CEE, Germany, Austria, and Italy.
P&C insurance contract revenue rose to €24.4 billion from €22.8 billion, and the operating result increased 2.5% to the aforementioned €2.2 billion, which reflects the positive contribution from the consolidation of Liberty Seguros.
The P&C operating insurance service result was €1.5 billion for 9M 2024, up from €1.3 billion in the prior year period. Lastly, the operating investment result decreased to €755 million from €855 million.
In Generali’s life business, GWP rose by a significant 23.3% to €45.7 billion, with net inflows of €6.8 billion as the Present Value of New Business Premiums (PVNBP) increased significantly to €39.4 billion on the back of numerous drivers, including strong savings production in Italy, growth in hybrid products in France, and growth in China.
In terms of profitability, life new business value rose 1.8% to €1.8 billion in 9M 2024, although the new business margin fell slightly to 4.45% from 5.74%. The life contractual service margin rose 1.8% year-on-year to €31.5 billion, and the life operating result increased to the aforementioned €3 billion.
The asset and wealth management operating result increased 20.1% year-on-year to €837 million, with the operating result of the asset management segment up 9.1% to €390 million, while the operating result of Banca Generali group increased to €447 million.
Generali’s solvency ratio at the end of September was 209%, down from 220% at the end of 2023, but still solid.
“In the third quarter of 2024, Generali continued to deliver strong growth in operating result driven by the performance of all business segments. The very positive trend in Life net inflows throughout the year was maintained. We also achieved further growth in P&C profitability despite the high impact of natural catastrophes.
“Asset & Wealth Management contributed significantly proving the strength of our business model. Thanks to our focus on the diversification of profit sources, we continue to deliver in a complex and evolving global environment. Looking ahead, we are fully on track to successfully complete the ‘Lifetime Partner 24: Driving Growth’ plan and we are working on our new strategy that will be presented on 30 January 2025,” said Generali Group CFO, Cristiano Borean.
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