Rating agency AM Best has upgraded the Generali’s outlook to stable from negative following the insurer’s solid operating performance, strong business position and improving risk-adjusted capitalisation.
The rating agency also affirmed Generali’s financial strength rating of A (Excellent).
“Offsetting rating factors include the sensitivity of the group’s risk-adjusted capitalisation to financial market volatility and profitability pressures arising from the challenging macro-economic environment in its key markets. The revised outlook reflects the stabilisation of the macro-economic and financial environment of Italy, which remains Generali’s core market, and the ongoing successful execution of Generali’s strategic plan following a senior management change in 2012,” said AM Best.
It added that challenging market conditions are likely to prevail in Generali’s core European markets, which means that premium revenue is expected to remain flat, as Generali focuses on improving technical profitability.