Profits stable at Generali as P/C unit performs well
Profits at Generali remained stable in 2016 despite what the company called a challenging macroeconomic environment and low interest rates and while gross written premiums shrank slightly overall, the company property/casualty unit enjoyed some growth.
The company made a net profit of €2.08 billion, a 2.5 percent increase on the year before; its gross written premiums slipped by 3.9 percent to €70.5 billion, and its overall income was €86.1 billion, a decrease on the €91.9 billion it generated the year before.
Within this, its P/C unit performed well, however, its gross written premiums increasing by 2.1 percent to €20.7 billion and generating a combined ratio of 92.5 percent, slightly better than in 2015.
The life segment shrank in size, however, by 6.3 percent to each €53.2 billion which the company said was a reflection of its disciplined approach on products and desire to optimize the return on invested capital, and the current performance of financial markets.
The company warned on the ongoing difficult trading conditions and set out its strategy to deal with this.
"Within a macroeconomic and financial context characterized by low interest rates, high uncertainty in financial markets and by a constantly evolving regulatory scenario, the Group will intensify its focus on the initiatives of the Technical Excellence (TechEx) programme and cost efficiency," it said.
"In the Life sector Generali aims to enhance the value of its portfolio by taking a simplification and innovation approach for the range of product solutions. Property and casualty segment management will therefore continue to play a key role in the implementation of the strategy of the Group, which aims to become a leader in the retail segment in Europe thanks to the degree of capital absorption of those products which allows for efficient allocation.
"Despite the challenging macroeconomic environment and volatility of the financial markets, in 2017 the Group expects to increase shareholder remuneration, consistent with the strategic plan presented to the market."
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