Generali reports record operating result of €6.9bn as P&C combined ratio strengthens

Italian insurer Generali generated a record operating performance of €6.9 billion in its full year 2023 results, an increase of 7.9% as a result of a positive contribution from all segments, led by Property & Casualty (P&C).

Group-wide, the insurer has reported an “excellent” new business margin of 5.78%, and a net result of €3.7 billion, up 68% year-on-year, with an adjusted net result of €3.6 billion, up 14% on 2022’s figure.

Gross written premiums (GWP) rose more than 5% year-on-year to €82.5 billion, driven by significant growth in P&C.

Within P&C, premiums rose 12% to €31 billion with growth of 18% in primary motor and growth of 9% in primary non-motor.

The P&C segment operating result grew to €2.9 billion, a 16% increase, as the combined ratio strengthened by 1.4 percentage points to 94%, driven by a positive development in the loss ratio to 64.9%.

At the same time, the operating insurance service result was €1.8 billion compared with €1.3 billion in 2022, benefitting from a current year discounting effect of €814 million, up from €463 million in 2022. The investment result hit €1.1 billion compared with €1.2 billion a year earlier.

In the company’s Life business, GWP increased 2% year-on-year to €51.3 billion. However, Life net inflows were -€1.3 billion, with the firm explaining that the protection and unit-linked lines recorded positive net inflows, with
protection inflows growing to €4.6 billion, led by Italy, France and CEE, while net inflows in the unit-linked
line reached €4.4 billion, demonstrating their resilience. Net outflows from savings of €-10.2 billion were in line with the Group’s strategy to reposition its Life business portfolio.

New business volumes were €40.3 billion in 2023, down 9% year-on-year, reflecting the unfavorable economic environment amplified by higher interest rates. New Business Margin on PVNBP reached an excellent 5.78%, mainly owing to the increase of interest rates.

All in all, the life operating result increased by almost 2% to €3.735 billion in 2023 compared with €3.672 billion in 2022.

Finally, within the firm’s Asset & Wealth Management segment, the operating result grew 4.9% to €1.001 billion driven by a strong contribution from Banca Generali.

Philippe Donnet, Generali Group Chief Executive Officer, commented, “Generali’s strong performance in 2023, underpinned by a record in operating and net result with the positive contribution of all segments, demonstrates the successful execution of our ‘Lifetime Partner 24: Driving Growth’ strategy. Thanks to our strong cash and capital position we are accelerating the growth of dividends for our shareholders.

“The Group is in the best shape it has ever been as a profitable, diversified Insurance and Asset Management player. Generali’s future success will also benefit from the acquisitions of Conning and Liberty Seguros. I would like to take this opportunity to thank all our colleagues and agents for their efforts to achieve these very positive results. They are the foundation of our sustainable growth journey and of our commitment to act as a responsible investor, insurer, employer and corporate citizen.”

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