logo
Plus   Neg
Share
Email

Generali Q1 Profit Down, Premiums Edge Up; Warns On FY20 Profit - Quick Facts

Italian insurance group Assicurazioni Generali SpA (ARZGY.PK) reported Thursday that its first-quarter net profit declined to 113 million euros from last year's 744 million euros.

Net profit was affected by 655 million euros in net impairments due to the current financial markets performance as result of the global Covid-19 pandemic.

Consolidated operating result, however, grew 7.6 percent to 1.45 billion euros from 1.35 billion euros last year, thanks to the contribution from the P&C and Asset Management segments.

The company noted that the first three months of the year showed a good operating performance and confirmed its solid capital position.

Total gross written premiums were 19.16 billion euros, up 0.3 percent from last year's 18.87 billion euros. The results reflected positive development from the P&C segment which offset the decline in the Life segment.

In the Life segment, net inflows amounted to 3.1 billion euros, down 25.2 percent.

Looking ahead, Generali estimates that the financial markets' weakness and the consequences of the outbreak will adversely impact its 2020 net result, mostly due to impairments.

Further, operating result is expected to be resilient in 2020, albeit with a likely decrease compared to 2019.

From an operational standpoint, the macroeconomic consequences of Covid-19 will affect its topline evolution, particularly in travel insurance. The recurring financial revenues will also be adversely impacted.

Generali said it is working to significantly reduce costs in order to mitigate the impact of the foreseen reduction in revenues.

For comments and feedback contact: editorial@rttnews.com

Business News

RELATED NEWS
Follow RTT