Generali achieves record results in 2021

March 23, 2022 | 14:51
At a recent meeting, chairman Gabriele Galateri di Genola and the board of directors at Generali Group approved the consolidated financial statements for last year, showing strong growth across all segments.
Generali achieves record results in 2021
Generali achieves record results in 2021

For the third consecutive year, Generali has recorded its best performance with operating results touching $6.5 billion. This follows $5.74 billion in the fiscal year 2020 and is thanks to positive growth across all segments.

The life and property and casualty (P&C) segments achieved excellent profitability with the new business margin up 0.57 percentage points (pp) to 4.5 per cent. The combined ratio was the best and least volatile among its peers at 90.8 per cent, up 1.7 pp.

The operating results of the asset management segment rose to almost $741 million from around $602 million in 2020. This growth was mainly boosted thanks to the overall increase of assets under management and the continued expansion of the real assets strategy.

Generali achieves record results in 2021
Generali Vietnam has contributed to the group’s excellent 2021 results
The group’s gross written premiums amounted to just under $83.6 billion, showing a 6.4 per cent jump thanks to positive contributions from both the life and P&C segments.

The net result grew significantly to reach $3.1 billion, climbing from $1.9 billion in 2020. The adjusted net result – excluding $57.3 million relating to the acquisition of the Cattolica Group and the extraordinary costs related to its integration – increased to $3.1 billion, up 45.1 per cent from $2.12 billion in 2020.

The group’s gross written premiums amounted to $83.6 billion, showing a 6.4 per cent jump thanks to positive contributions from both the life and P&C segments.

Net inflows from life policies grew by 4.4 per cent to reach $14 billion, while life technical reserves increased to just over $467 billion, up 10.3 per cent.

The group's total assets under management stand at nearly $783 billion, up 8.4 per cent. The return on equity rose by 4.4 pp to 12.1 per cent.

The shareholders’ equity was $32.3 billion, down 2.4 per cent.

Generali achieves record results in 2021
Generali has quickly developed a strong network, a preeminent product suite, excellent customer service with leading RNPS score in the Vietnamese market in 2020 and 2021

Generali Group confirmed an excellent capital position, with a solvency ratio of 227 per cent. The increase compared to 2020 at 224 per cent was driven by the very positive contribution from normalised capital generation and the positive development in financial markets which more than offset the negative impact deriving from regulatory changes, M&A transactions, and dividend provision for the period.

In respect to forecasts of a further recovery in the global economy in 2022, the recent Russian-Ukrainian conflict has resulted in greater uncertainty and volatility and a risk of a downward revision of growth estimates.

To date, the development of the conflict remains unpredictable and it is not possible to make a reasonable estimate of the effect of the crisis on the markets and on the insurance business.

In line with its ‘Lifetime Partner 24: Driving Growth’ strategic plan, the group intends to pursue sustainable growth, enhance its earnings profile, and lead innovation to achieve a compound annual growth rate in earnings per share between 6-8 per cent in the period 2021-2024, increase the net holding cash flow in excess of $9.37 billion by 2024, and distribute cumulative dividends to shareholders for an amount between $5.73-6.17 billion by 2024.

“The excellent results we present today mark the successful conclusion of the ‘Generali 2021’ strategic plan, demonstrating once again that we deliver on our promises,” said Generali Group CEO Philippe Donnet.

“We are now effectively implementing our new strategy ‘Lifetime Partner 24: Driving Growth,’ focused on sustainable growth, an enhanced earnings profile, and the creation of value for all stakeholders."

By Anh Duc

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