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• P&C Top Line Growth: 8.6% increase, driven by pricing and non-motor volume growth.

• Average Annual Premium Growth: Approximately 6%, with motor premiums growing around 8%.

• Combined Ratio: Reported below 90%, with a target of around 94.5% by 2027.

• Life Net Flows: EUR3 billion in the first quarter, with EUR1.4 billion in protection & health and EUR1.2 billion in hybrid & unit-linked.

• Surrenders in Italy: Down 20% year-on-year in the first quarter.

• New Business Margin: Increased by 26 basis points compared to last year.

• CSM Release Ratio: 2.5%, with full-year 2025 guidance at the mid-high end of 8% to 10%.

• P&C Operating Insurance Service Result: EUR180 million growth quarter-on-quarter, a 25% increase year-on-year.

• Solvency 2 Ratio: 210%, reflecting strong capital generation and disciplined asset allocation.

• Adjusted Earnings Per Share Growth: 9.4% year-on-year.

• Warning! GuruFocus has detected 3 Warning Sign with ARZGF.

Release Date: May 22, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Generali (ARZGF) reported strong growth in its Property & Casualty (P&C) segment, with an 8.6% increase in the top line, driven by pricing and volume growth in non-motor segments.

• The company achieved a reported combined ratio below 90%, indicating strong underwriting performance and cost management.

• Life net flows reached EUR 3 billion in the first quarter, with significant contributions from protection & health and hybrid & unit-linked products.

• Generali (ARZGF) maintained a robust capital position with a Solvency 2 ratio of 210%, reflecting strong capital generation and disciplined asset allocation.

• The company is on track with its Lifetime Partner 27: Driving Excellence plan, focusing on strategic growth areas such as health, climate, and SME markets.

Negative Points

• Generali (ARZGF) experienced negative operating variances of EUR 77 million due to a regulation change on stamp duty in Italy, impacting the Solvency 2 ratio.

• The company faced challenges in its Life segment with surrenders in Italy not yet returning to normal levels, although they are on a positive trajectory.

• The P&C segment's combined ratio benefited from positive seasonality, which may not be sustainable throughout the year.

• Economic variances were only moderately positive due to negative returns from non-European equities and currency depreciation.

• The company anticipates project costs related to strategic initiatives, which could increase expenses by EUR 25 million to EUR 50 million compared to 2024.