Generali Earnings: Reports Sound Profits for First 9 Months; Shares Fairly Valued

Generali has reported solid 9-month results with a mid-single-digit rise in gross premium written and a double-digit rise in operating profit. The growth is mainly attributable to the property and casualty segment where Europ Assistance and motor insurance have grown well. Generali’s overall property and casualty combined ratio has improved versus the same period last year, though half of that improvement is due to higher discounting. The impact of natural catastrophe losses over the first 9 months amounts to EUR 875 million and those losses have primarily been caused by floods and hailstorms in Italy, Greece, and Central and Eastern Europe. Human-made losses have amounted to a little under EUR 400 million. Overall, Generali property and casualty has delivered a 94.3% combined ratio, 97.9% undiscounted, and versus the same period last year that is an improvement. Property and casualty operating profit is EUR 2.15 billion, marked by nonoperational developments.