Fitch Ratings upgrades Generali’s outlook to positive

Fitch Ratings has upgraded the Outlook for Assicurazioni Generali S.p.A. (Generali) and its core subsidiaries to Positive from Stable, while affirming the Insurer Financial Strength (IFS) Rating at ‘A+’.

Fitch has also affirmed Generali’s Long-Term Issuer Default Rating (IDR) at ‘A’.

The Positive Outlook follows Fitch’s recent upgrade of Italy’s sovereign Outlook to Positive on 18 October 2024 and reflects Generali’s reduced exposure to Italian sovereign bonds.

The affirmed IFS Rating at ‘A+’ and IDR Rating at ‘A’ continue to reflect Generali’s very strong company profile, capitalisation, and leverage.

Fitch noted that a sustained increase in Generali’s sovereign investment concentration risk above 1.0x capital could lead to a downgrade. Similarly, sustained deterioration in capitalisation, a significant rise in the financial leverage ratio, or a revision of Italy’s Outlook to Stable could also negatively impact the ratings.

Conversely, factors supporting a potential upgrade include an upgrade of the Italian sovereign, provided Generali’s sovereign investment concentration risk remains below 1.0x capital.

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