In This Article:
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Operating Result: EUR7.3 billion, a new record high.
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Adjusted Net Result: EUR3.8 billion, a new record high.
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Life Net Inflows: Close to EUR10 billion.
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Life Reserves: 71% related to capital-light products.
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Property & Casualty Gross Written Premiums: Increased by 7.7%.
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Combined Ratio: Improved to below 96%.
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Assets Under Management: EUR863 billion, a 32% increase.
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Asset & Wealth Management Operating Result: Grew by almost 23% to EUR1.2 billion.
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Net Holding Cash Flow: EUR3.8 billion, the highest ever reported.
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Solvency II Ratio: 220%.
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Dividend Per Share Proposal: EUR1.43, up by almost 12% year-on-year.
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Share Buyback Proposal: EUR500 million, subject to regulatory approval.
Release Date: March 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Generali (ARZGF) achieved record highs in operating results and adjusted net results, with EUR7.3 billion and EUR3.8 billion respectively.
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The company reported strong net inflows in the Life segment, reaching nearly EUR10 billion, driven by protection and unit-linked lines.
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Property & Casualty gross written premiums increased by 7.7%, with improvements in both motor and non-motor lines.
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The Group's total assets under management grew by 32% to EUR863 billion, supported by positive net inflows and the consolidation of Conning Holdings Limited.
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Generali (ARZGF) plans to propose a dividend per share increase of nearly 12% and a EUR500 million share buyback, reflecting strong cash flow generation and a solid capital position.
Negative Points
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Natural catastrophes had a EUR1.2 billion impact on the Property & Casualty segment, affecting the combined ratio.
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The motor insurance segment in Spain and Portugal faces challenges due to persistent inflation, requiring further pricing adjustments.
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The Life investment result is expected to be lower in 2025, with a projected EUR900 million, reflecting a conservative outlook.
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The company faces challenges in the direct insurance segment in Italy, particularly with Genertel, impacting growth in motor policies.
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The Solvency II ratio decreased to 214% at the start of the year, and the EUR500 million share buyback is not yet reflected in this ratio.
Q & A Highlights
Q: Can you discuss the strong performance in Property & Casualty (P&C) in Q4, particularly the improvement in the loss ratio, and what this means for future profitability? A: Giulio Terzariol, CEO of Insurance, explained that while the Q4 performance was strong, it should be viewed with caution due to year-end accounting adjustments. However, the underlying quality of the numbers is solid, with a 98% undiscounted combined ratio in motor. Rate increases are expected to continue, providing room for further improvement in 2025.