Generali Group highlights continued growth in H1 2024 financial results

Generali Group highlights continued growth in H1 2024 financial results | Insurance Business Australia

Insurance News

Generali Group highlights continued growth in H1 2024 financial results

Firm saw a marked rise in GWP in both the life and P&C divisions

Insurance News

By
Kenneth Araullo

Generali Group has reported continued growth in its operating results for the first half of 2024, supported by a diversified business profile.

Gross written premiums rose to €50.1 billion, marking a 20.4% increase, driven by notable growth in both the life and property & casualty (P&C) segments. Life net inflows exceeded €5.1 billion, with strong performance in protection and unit-linked products, which the group says aligns with its strategic focus and the success of commercial initiatives implemented since 2023.

The group’s operating result increased by 1.6% to €3.723 billion, bolstered by positive outcomes in the life and asset & wealth management segments. The life segment’s operating result rose by 7.8% to €1.955 billion, while the new business value improved by 3.7% to €1.289 billion.

However, the P&C segment’s operating result decreased by 6.7% to €1.728 billion, influenced by a higher impact of natural catastrophes and reduced benefits from discounting. The combined ratio for P&C stood at 92.4%, an increase of 0.8 percentage points.

In the asset & wealth management segment, the operating result grew by 19.4% to €566 million, driven by the strong performance of Banca Generali and positive contributions from Conning Holdings Limited. Conversely, the Holding and other businesses segment reported a loss of €227 million, compared to a loss of €158 million in the first half of 2023.

The group’s adjusted net result stood at €2.025 billion, down from €2.330 billion in the same period last year, primarily due to capital gains and other one-offs recorded in the first half of 2023. Excluding these effects, the adjusted net result would have remained largely stable. The net result for the period was €2.052 billion, compared to €2.243 billion in the previous year.

Generali’s shareholders’ equity rose by 0.8% to €29.2 billion, supported by the net result for the period, although this was partially offset by the 2023 dividend payment. The contractual service margin (CSM) increased slightly to €31.9 billion from €31.8 billion at the end of 2023.

Additionally, the group’s total assets under management (AUM) grew significantly to €821 billion, reflecting a 25.2% increase primarily due to the inclusion of Conning Holdings Limited’s AUM.

The group also confirmed its robust capital position, with the solvency ratio at 211%, down from 220% at the end of 2023. This decrease was mainly attributed to the acquisition of Liberty Seguros and the launch of a €500 million share buy-back programme.

Generali Group results across segments

Within the life segment, gross written premiums reached €32.722 billion, representing a 26.6% increase, driven by strong performance across all business lines. The protection line grew by 11.9%, while the savings line saw a substantial 41.6% improvement, largely due to contributions from France, Italy, and Asia. The unit-linked line also experienced significant growth of 17.8%, led by Italy and France.

Life net inflows remained positive, exceeding €5.1 billion, with protection inflows reaching €3.068 billion, led by Italy, France, and Germany. Unit-linked net inflows amounted to €2.573 billion, primarily driven by France, Germany, and Italy. Net outflows from savings and pension improved significantly to €496 million, compared to €6.228 billion in the first half of 2023.

New business volumes, measured by the present value of new business premiums (PVNBP), increased by 40.1% to €29.9 billion, supported by strong production in savings products in Italy, market momentum in hybrid products in France, and exceptional volumes in China. The New Business Value (NBV) rose by 3.7% to €1.289 billion, with a New Business Margin (NBM) of 4.31%.

In the P&C segment, gross written premiums grew by 10.5% to €17.4 billion, driven by strong performance in both the motor and non-motor lines. The motor line saw an 18.0% increase, with significant contributions from Central and Eastern Europe (CEE), Germany, Austria, and Argentina. The combined ratio for P&C was 92.4%, up from 91.6% in the first half of 2023, reflecting an increase in the loss ratio to 63.6%.

Generali Group CEO, Philippe Donnet (pictured above), stated that the continued growth in operating results and the return to positive life net inflows confirm the resilience of the Group and the effectiveness of its strategy.

Looking ahead, Generali also noted that it remains focused on achieving the targets set out in its “Lifetime Partner 24: Driving Growth” strategic plan and is preparing to unveil a new Group strategy at its Investor Day in January 2025.

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