The operating result grew by 7.6% to EUR 2,724 million thanks to positive developments in all business segments.
The improvements seen in the Life and P&C segments were due primarily to the technical profitability, confirmed by the combined ratio at 91.8% (-0.2 pp.), and the New Business Margin at 4.4% (-0.18 pp.). The Assent Management segment increased due to the growth in assets under management and the consolidation of revenues of the new asset management boutiques.
1H2019 figures highlights (vs. 1H2018) - unaudited
- Gross written premiums (GWP) : EUR 35,728 million (+1.8%, compared to the same period of 2018), of which:
- P&C: EUR 11,407 million (+3.9%)
- Life: EUR 24,321 million (+0.9%)
- Consolidated operating result: EUR 2,724 million (+7.6%), of which:
- P&C: EUR 1,121 million (+1.4%)
- Life: EUR 1,611 million (+4.0%)
- Asset management: EUR 186 million (+17.4%)
- Result attributable to the Group: EUR 1,789 million (+34.6%)
- P&C combined ratio: 91.8% (-0.2 pp.)
- Life net inflows: EUR 7,387 million (+29.5%)
- Total Assets Under Management: EUR 605,857 million (+24.1%)
- Solvency Ratio: 209% (-8 pp.)
Property & Casualty (P&C) segment
P&C GWP maintained the growing trend seen in the first quarter of this year, reaching EUR 11.4 billion (+3.9%). Motor premiums increased by 3.1% while non-motor premiums rose by 3.6%. ACEER (Austria, CEE & Russia) region propelled the P&C business of Generali (amounting EUR 2,328 million in GWP terms), together with Italian (EUR 2,656 million GWP) and German (EUR 2,206 million GWP) markets.
P&C combined ratio improved to 91.8% y-o-y (-0.2 pp.), all main regions managing to keep the indicator under 100.0% threshold. "The improvement was the result of the drop in the non-catastrophe current year loss ratio in both the motor and non-motor lines of business. (...) In the first half of this year, natural catastrophe claims had a total impact of EUR 142 million, due mainly to the storm that hit central Europe in March and the bad weather conditions in June that affected Germany and Italy," explained the company.
P&C operating result reached EUR 1.1 billion (+1.4%), attributable to the improvement of the combined ratio.
Life segment
Life net inflows increased to EUR 7.4 billion (+29.5%). In particular, Italy benefitted from the decrease in lapses, France from increased premiums, and Asia benefitted from the combined effect of both factors.
Life GWP amounted to EUR 24.3 billion, representing an increase of 0.9% due to boosts in protection line across all markets where Generali operates. The savings line remained stable, while unit-linked business lines decreased by 8.7% in GWP volume.
The most important markets showed improvements in life segment activity; France showed a 9.2% increase in life business (due to an 18.5% increase in capital-light saving products), Germany faced a positive 7.1% evolution y-o-y (thanks to solid growth in all lines of business) and Asia a 13% increase (driven by protection and saving products).
"The decline seen in Italy (-9.7%) reflects a comparison with the second quarter of 2018 which benefitted from EUR 1.2 billion of premiums from the renewal of group savings contracts. Without considering these renewals, total premiums in Italy would have posted an increase of 2.8%," the Group said.
New business in terms of PVNBP (present value of new business premiums) reached EUR 21.4 billion (+5.4%). There was a significant increase in saving products (+12.1%) and protection products (+17.7%), in contrast to a 11.7% decrease in unit-linked products.
Life operating result reached EUR 1.6 billion (+4%), thanks to the development of the technical margin, net of insurance operating expenses, and the positive contribution from investment results.
Asset Management segment
The operating result of the business segment stood at EUR 186 million (+17%). This performance is largely due to the increase in operating revenues, amounting to EUR 360 million (+25%), also as a result of the consolidation of revenues of the new boutiques.
The Asset Management segment net profit was EUR 133 million (+22%). The total value of this segment's Assets Under Management at 30 June 2019 was EUR 519 billion.
Philippe DONNET, Generali Group CEO, commented on the half-year of 2019 results:
"These results show the Group's capacity to generate sustainable financial and industrial value for all of its stakeholders. The first half of the year confirms the effective and disciplined implementation of the three-year strategic plan 'Generali 2021' in all business segments. Generali today is an increasingly global insurance and asset management group, with technical excellence in the Life and P&C segments and distinctive expertise in asset management, allowing us to successfully overcome the competitive challenges of the sector to become lifetime partner to our customers."
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Source: Generali.com
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