Generali, 1.1 billion revenue within the first quarter. The inventory is falling on Piazza Affari

MILANO – Generali closes the primary quarter of the yr with a declining revenue in comparison with the identical interval of 2023, recording 1.1 billion in income (-9%). The end result – stories a word from the group – could be a rise of 8% excluding the non-recurring revenue realized in the identical interval final yr from the sale of a property in London. Working revenue rose to 1.9 billion (+5.5%).

Gross premiums are rising to 26.4 billion (+21.4%), due to each the life and non-life segments and the consolidation of Liberty Seguros in February. Specifically, life web inflows returned to optimistic at 2.3 billion, solely pushed by the pure threat and well being and unit-linked strains, in step with the group technique. The influence of pure disasters is stronger, accounting for 28 million in comparison with 10 million within the first quarter of 2023.

Borean: “Outcomes in step with goals”

“Within the first quarter of 2024, the expansion of Generali’s working end result continues, due to the stable contribution of all enterprise segments. Within the life phase the Group achieved optimistic web inflows, due to strategic selections centered on the pure threat and well being strains and unit-linked and due to the industrial actions carried out throughout 2023. The non-life phase additionally advantages from the consolidation of Liberty Seguros, an acquisition which is already contributing positively to the group’s earnings profile. Because of the diversified insurance coverage and asset administration mannequin and to the stable capital place, pushed by the sturdy normalized capital technology, we’re totally in line to efficiently obtain all of the goals of the ‘Lifetime Accomplice 24: Driving Development’ technique”, commented Generali’s CFO, Borean Christian.

The title goes down in Piazza Affari

Nevertheless, the numbers don’t appear to persuade the market, with the inventory being among the many worst on Piazza Affari. “The undiscounted loss ratio (the ratio of claims to premiums), excluding catastrophes and reserves, remained unchanged in comparison with the earlier yr, and we think about this a small disappointment as we had hoped that costs had materially exceeded inflation” , they appear from Jefferies Whereas Mediobanca, Banca Akros e Morgan Stanley they spotlight how the rising working revenue exceeded forecasts.

“With the stabilization of bond yields, Generali is benefiting from a slowdown in web outflows within the conventional life portfolio” observes Jefferies, additionally recognizing that the concentrate on pure threat and well being strains and unit-linked strains permits “fascinating progress which is able to enhance the quantity and sustainability of margins whereas lowering publicity to monetary market threat.”