Generali’s 2020 profit slides 34% to €1.7bn

Italian insurer Generali has posted a net profit of €1.7 billion for 2020, down 34% from the €2.6 billion achieved in 2019.

The company’s profitability was impacted by a €332 million liability management transaction, a contribution of the Extraordinary International Fund for Covid-19 and €287 million of impairments on investments mainly in the first half of the year.

Generali’s operating result for the year reached €5.2 billion, up from the €5.1 billion secured in 2019. The impact of Covid-19 on the operating result was estimated at €123 million.

Gross written premiums of the group amounted to €70.7 billion, a slight increase compared to last year, while total Assets Under Management rose 5.4% to €664 billion. “Today we are presenting excellent results, obtained in an unprecedented context due to the crisis generated by the pandemic. It confirms the greater resilience of Generali compared to our peers in the sector, both from a technical point of view and its capital position,” said Generali Chief Executive Officer Philippe Donnet.

“For the second consecutive year, we have achieved the Group’s best ever operating result and, also thanks to the further growth of the dividend, we continue to create value for all of our stakeholders. “We have entered the final year of our strategic plan and are well positioned to achieve all of the objectives of ‘Generali 2021’. We have defined and implemented a new organizational structure to ensure, not only the success of this plan, but to also prepare for the next strategic cycle.”

Donnet added that The group has accelerated its business transformation to guarantee that it has a distribution model that blends both physical and digital and helps ensure ensure it is closer to its customers than ever.

“Finally, I am very proud that in the critical moment of the crisis, Generali took immediate action with our Extraordinary International Fund and other high impact initiatives to support the communities and territories in which we operate,” Donnet added.

Source: Reinsurance News

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