By Giovanni Legorano
MILAN-- Assicurazioni Generali SpA on Thursday reported a 9.4%
rise in first-quarter net profit to EUR660 million ($905 million),
aided by increases in gross written premiums and higher
profitability at its financial and nonlife divisions.
The Italian insurer, which is Europe's third largest by
premiums, said gross written premiums rose 1.5% from a year earlier
to EUR18.48 billion, while overall operating profit was EUR1.3
billion, compared with EUR1.29 billion a year earlier. The increase
in premiums was mainly helped by the life segment of the business,
particularly in Italy.
The company's financial division reported a 21% rise in
operating profit to EUR144 million, driven by a positive
performance at Banca Generali. The insurer said this advance was
mainly due to higher dividends, commissions and capital gains made
by this part of the business.
Operating profit in the life sector was stable at EUR779 million
in the first quarter, while operating profit at the nonlife segment
rose 3.7% to EUR516 million, despite the floods and storms in Italy
and France during January and February that cost the company
EUR30.4 million.
Generali said its Solvency I ratio--a measure of financial
strength--rose to 160% at the end of April from 141% at the end of
the year. The insurer said the improvement was mainly because of an
increase in shareholders' equity, which rose 10% to EUR21.74
billion over the first quarter.
Late Wednesday, the company said it had entered into exclusive
talks to sell its Swiss private bank BSI to Banco BTG Pactual
S.A.
Since Mario Greco took the helm of Generali in August 2012, the
company has sold a number of businesses and stakes in companies,
including parcels of shares in Banca Generali and a U.S.-based
reinsurance business. It also announced plans to relinquish
investments in Italian companies, such as Telecom Italia.
Chief Financial Officer Alberto Minali said in a statement: "We
believe that we will be able to meet our disposal and Solvency I
targets ahead of schedule."
Mr. Minali told journalists that the insurer will be able to
achieve a Solvency I of above 160% through asset sales and internal
capital generation, even if market volatility negatively affects
its solvency position.
In particular, Mr. Minali said the proceeds from the sale of BSI
would more than compensate the seven percentage points of Solvency
I that Generali will lose once it completes the purchase of GPH, a
Czech-based insurer.
He added that besides the BSI sale and the completion of the
sale of Fata Assicurazioni Danni to Societa' Cattolica
Assicurazioni announced in November for EUR179 million, Generali
doesn't plan to sell other assets at this stage.
Write to Giovanni Legorano at giovanni.legorano@wsj.com
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