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.