Generali ups 9M P&C margins despite cats; still steers clear of motor

European insurance group  Generali increased gross written premiums in its P&C segment by 11.4% during the first nine months of 2023, helping to improve segment margins despite an uptick in cat losses.

The P&C segment combined ratio came down by 3.1 points to 94.3% on the premium gain and a 3.9 point decline in the loss ratio, bolstered by positive discounting effects.

Natural catastrophes put 3.7 points into the combined ratio, up a full point from the 2.7 points in 9M 2022, mainly driven by the impact from floods and hailstorms in Italy, CEE and Greece during the third quarter, management said.

The undiscounted combined ratio, which excludes the time cost of money discounting on claims reserves, improved by a smaller 1.5 points to 97.9%.

Premium growth included a 10.1% gain in non-motor and was said to hit “widespread growth across all main areas.” Europ Assistance premiums grew by 32.4%, thanks to the continued volume expansion in the travel business.

“The Group maintains its focus on the profitable non-motor line,” management said of the continuing preference.

In the much-watched automotive segment, growth was more muted, boosted to a 12.9% headline rate only by the impact of hyperinflation in Argentina.

Counting out the Argentinian impact, motor premiums grew 5.1%, with management bragging of “particularly positive dynamics” in Italy, France, and CEE.

Operating profits in the life segment slipped lightly from the prior year period on a 8.6% decline in new business volumes alongside stable margins.

After inclusion of asset management, corporate costs and a hefty gain on IFRS 17 accounting of discount effects, the group operating results was up nearly 17% year on year.

Towards the bottom line, the group’s adjusted net results were up nearly 30% to EUR 2.98 billion.

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