Generali records losses from natural catastrophes above 2023 budget

(Reuters) — Generali sustained a higher loss from natural catastrophes in the first nine months of 2023 than it budgeted for the full year as such events have become more frequent and have a greater impact, its chief financial officer said Thursday.

Italy’s leading insurer had recorded a loss of around €840 million ($888 million), net of reinsurance, from natural catastrophes at the end of September, an amount exceeding the budget for the entire year, Cristiano Borean said during an event in Munich.

He did not give a figure for the annual budget. The equivalent loss was €673 million last year.

Generali is due to publish its nine-month results on Nov. 17.

It said in its first-half results that natural catastrophes hit its combined ratio by 1.2 percentage points, with floods in northern Italy in May having a particular impact.

Mr. Borean noted how the emergence of environmental, social and governance issues as a significant factor has substantially changed the way insurance companies underwrite risks and manage their investments.