Profits at Generali plummet 40% in nine months amid COVID-19 and its economic toll
Profits fell sharply at Italian insurer Generali in the first nine months of 2020 due to the "heavy macroeconomic and financial impact" of the ongoing COVID-19 pandemic, according to its chief financial officer Cristiano Borean, who highlighted its resilience, improving technical margins and capital position.
The insurer's net profit for the first nine months plunged 40 percent to approximately €1.3 million, while in the same period of 2019 it generated a profit of approximately €2.2 million.
The decrease reflects €310 million of net impairments on investments related to the performance of the financial markets, €183 million for the arbitration settlement on the sale of BSI, the contribution of €100 million for the Extraordinary International Fund for the pandemic emergency, and €73 million expense from the liability management transaction.
Generali reported first nine months gross written premiums of approximately €52 billion, showing a slight increase (0.3 percent) compared to last year, driven by contribution from the life segment and resilient property & casualty premiums.
The combined ratio for the period was 89.7 percent, an improvement of 2.8 percentage points compared with the same period of 2019.
Borean, commented: “The results for the first nine months continue to demonstrate Generali’s resilience as evidenced by the excellent technical margins supporting the operating result and capital position. In an environment that continues to be characterised by heavy macroeconomic and financial impact of the ongoing pandemic, the Group confirms its strengths based on its leadership position in Europe and a primarily retail-focused, flexible and diversified business model.
He added: "Generali remains committed to be a true Lifetime Partner to its customers, through specific aid and assistance initiatives, and to support the communities where it operates, through initiatives including the Extraordinary International Fund for COVID-19.”
