Q1 profit surge vindicates Generali 2021 strategy

Generali saw profits surge in the first quarter of 2021 in results that its chief financial officer (CFO) said vindicated the Generali 2021 strategy, which laid out its ambition to lead the European insurance market for individuals, professionals and SMEs.

Generali’s net profit surged to €802 million in Q1, having stood at €113 million in the same period of 2020. Its profit in 2020 had been reduced by significant impairments on investments and the expense of its Extraordinary International Fund for COVID-19.

Gross written premiums grew by 4.2 percent to €19.7 billion in the first three months of 2021, having been €19.2 billion the previous year. This included a year on year increase of 5.5 percent in the life segment and of 1.9 percent in the P&C segment.

Generali’s combined ratio was 88 percent, inching down from 89.5 percent in Q1 2020.

Cristiano Borean, CFO of the Generali Group, said its Q1 performance had been in line with its targets, which he argued confirmed the effectiveness of the Generali 2021 strategy.

“The group remains among the most solid in the insurance sector, with an excellent capital position,” he said. “The rebalancing of the life business mix is well under way and has enabled us to maintain excellent profitability in the current low interest rate environment. Generali continues to post the best, least volatile combined ratio among its peers and has achieved impressive results in asset management and other segments.”

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