Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Generali shares dip despite first-quarter premiums topping estimates

Published 05/21/2024, 09:00 AM
© Reuters.

Investing.com -- Shares in Assicurazioni Generali (BIT:GASI) edged lower on Tuesday despite the Italian insurer posting better-than-anticipated premiums in the first quarter.

Operating profit, which is closely watched by markets, also ticked up by 5.5% versus the year-ago period to 1.9 billion euros, roughly meeting projections.

Underpinning the jump in income were gross written premiums, a measure of the amount of money paid for insurance policies, which increased by 21.4% year-on-year to 26.4 billion euros -- well ahead of consensus expectations. Net inflows at Generali's life insurance unit, fueled by strength in its savings and pensions products, boosted premiums.

Meanwhile, the undiscounted combined ratio, a profit measure used by insurance groups, at Generali's Property & Casualty division improved to 93.7% from 94.2% a year ago. A number under 100 indicates a profit.

"With bond yields stabilising, Generali is now benefiting from a slowdown in the net outflows in the traditional life book, while the focus on protection and unit-linked is delivering attractive growth," analysts at Jefferies said in a note to clients.

But the analysts flagged that the undiscounted loss ratio, when excluding the impact of catastrophes and reserves, was "flat year-on-year," adding that they consider this to be "a minor disappointment."

"We had hoped that prices had materially overtaken inflation," the Jefferies analysts said.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.