Generali (ARZGF) (Q2 2024) Earnings Call Highlights: Strong Operating Results Amidst Challenges

In This Article:

  • Operating Result: Increased by 1.6% to over EUR3.7 billion.

  • Life Business Operating Result: Up 7.8% to over EUR1.9 billion.

  • Asset Management Operating Result: Increased by 5.5% to EUR255 million.

  • Wealth Management Operating Result: Rose by 33.8% to EUR311 million.

  • Total Assets Under Management: EUR821 billion, a 25.2% increase from full year 2023.

  • Third-Party Client Assets: Increased to EUR252 billion from EUR105 billion at year-end 2023.

  • Adjusted Net Result: EUR2 billion, a 13.1% decrease compared to the first half of 2023.

  • Solvency 2 Position: Remained solid despite deductions from acquisitions and share buybacks.

  • Life Business Net Inflows: Over EUR5.1 billion in positive net inflows.

  • P&C Premiums: Grew by 10.5% to EUR17.4 billion, or 5.7% excluding Argentina.

  • Combined Ratio Guidance: Reaffirmed below 96%.

  • Share Buyback: EUR500 million announced.

Release Date: August 09, 2024

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

Positive Points

  • Generali (ARZGF) reported a 1.6% increase in operating results, reaching over EUR3.7 billion, driven by strong performance in the Life, Asset Management, and Wealth Management sectors.

  • The company's total assets under management rose by 25.2% to EUR821 billion, largely due to the inclusion of Conning and its affiliates.

  • Generali (ARZGF) achieved over EUR5.1 billion in positive net inflows in the Life business, driven by protection and unit-linked products.

  • The Property & Casualty segment saw a 10.5% increase in premiums, with a stable frequency and improving claims inflation across markets.

  • Generali (ARZGF) announced a EUR500 million share buyback, reflecting a commitment to balancing shareholder remuneration with M&A activities.

Negative Points

  • The adjusted net result decreased by 13.1% to EUR2 billion, primarily due to capital gains and one-offs recorded in the previous period.

  • The Solvency 2 position was impacted by a 9-percentage-point deduction from the acquisition of Liberty Seguros and a 2-percentage-point deduction from share buybacks.

  • The Life business experienced a significant reduction in saving outflows, indicating potential challenges in maintaining inflow momentum.

  • The combined ratio guidance for Property & Casualty remains below 96%, but the impact of natural catastrophes and other factors could pose risks.

  • The investment yields in Life and P&C sectors decreased compared to last year, reflecting lower market yields, especially in European credit and China.