Generali Group toasts Q1's upbeat performance

June 24, 2022 | 14:48
(0) user say
On June 22, Generali Vietnam released the parent company Generali Group’s first-quarter financial report which highlights excellent profitability with growth in premiums and operating results and the group’s extremely solid capital position.

According to Generali Group CFO Cristiano Borean, the results for the first quarter confirm excellent performance, despite a context characterised by uncertainty due to current global events.

The business development in the most profitable segments demonstrates the group’s ability to consistently generate value while maintaining an industry-leading capital position.

Borean noted that during this three-month period, Generali also launched the new strategic plan Lifetime Partner 24: Driving Growth, which focused on strong growth in earnings per share, increased cash generation, and higher dividends.

Generali Group toasts Q1's upbeat performance
Generali Vietnam has contributed to the group’s performance with strong growth after more than 11 years of operation and outstanding achievements in products and services

As for business performance, the group's gross written premiums increased by 6.1 per cent to $23.4 billion thanks to growth in both the Life and P&C segments.

Life net inflows showed a 19.3 per cent jump to reach $4.1 billion and confirmed the positive trend in the unit-linked and protection lines of the business.

Life technical provisions stood at $444.2 billion – essentially stable compared to FY2021 – reflecting the performance of financial markets on the unit-linked component despite the increase in net inflows.

The group's operating result rose by 1.1 per cent to reach $1.7 billion.

The Life segment showed an increase in its operating result by 7.2 per cent and confirmed excellent technical profitability, with the New Business Margin growing at 4.9 per cent compared to 4.4 per cent in Q1 2021.

The operating results of the P&C segment were positive with a 1.2 per cent hike, also thanks to the contribution of the Cattolica group. The combined ratio stood at 90.4 per cent, growing by 2.4 p.p., mainly reflecting a higher loss ratio.

The operating result of the holdings and other businesses segment improved, largely thanks to the results from real estate.

The group's total assets under management, however, amounted to $714.1 billion – down 4.1 per cent compared to FY2021 – mostly due to the performance of financial markets.

Generali Group toasts Q1's upbeat performance
Generali quickly developed a strong network, a preeminent product suite, and excellent customer service with a leading RNPS score in the Vietnamese market in 2020 and 2021

The group confirmed its excellent capital position, with its solvency ratio at 237 per cent compared to 227 per cent in FY2021. The 10 p.p. increase mainly reflected the positive market variances of the quarter – driven by the rise in interest rates and the narrowing of spreads on government bonds, among others.

The global insurance sector may be affected by uncertainty due to an economic slowdown, an increase in inflation, and the risks of an escalation of current global events.

Amid global uncertainties, Generali Group confirms its strategy to rebalance the Life portfolio to further increase its profitability with a more efficient capital allocation.

In this context, Generali Group confirms its strategy to rebalance the Life portfolio to further increase its profitability with a more efficient capital allocation as interest rates continue to rise.

Simplification and innovation will continue to be key with the introduction of a range of modular product solutions that are designed for the specific requirements and new needs of customers and marketed through the most suitable, efficient, and modern distribution channels.

In the P&C segment, the group’s objective for the mature insurance markets in which it operates is to maximise profitable growth and, in parallel, gain ground in high-growth potential markets by expanding its presence and offerings.

In the Asset and Wealth Management segment, activities identified for the new plan will continue with the aim of extending the product catalogue, in particular for real assets and private assets, and enhancing distribution competencies. On the other hand, the Banca Generali group will be focused on the targets for size, profitability, and shareholders’ remuneration defined in its strategic plan announced in February.

By Anh Duc

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional