Generali Flags Ukraine Concerns on Outlook After 2021 Profit, Premiums Rose -- Update
March 15 2022 - 4:10AM
Dow Jones News
By Ed Frankl
Assicurazioni Generali SpA said Tuesday that its 2021 profit and
premiums topped expectations on positive growth across all its
business segments, though the Ukraine conflict had resulted in
extra uncertainty over its outlook.
Italy's largest insurer said full-year net profit came to 2.85
billion euros ($3.12 billion) compared with EUR1.74 billion the
prior year, on gross written premiums that rose 6.4% to EUR75.83
billion.
Premiums increased by 6.0% in its life business and 7.0% in its
property & casualty segment, Generali said.
Analysts had forecast net profit of EUR2.82 billion and gross
written premiums at EUR73.62 billion, according to consensus
expectations provided by the company.
Generali posted a record operating result for the third straight
year, at EUR5.85 billion, up from EUR5.21 billion last year, the
company said.
Return on equity, a key measure of profitability was 12.1%, up
from 7.7% last year, and its Solvency II ratio, a measure of an
insurer's financial strength, climbed 3 percentage points to 227%
on strong capital generation of EUR3.8 billion.
Generali proposed a dividend of EUR1.07 a share compared with
EUR1.01 the prior year.
However, the crisis in Ukraine has resulted in greater
uncertainty and volatility and a risk of downward revision of
growth estimates, the Trieste-based company said.
It said it was not possible to make a reasonable estimate of the
effect of the crisis on the markets and on the insurance
business.
The company kept its financial targets to 2024 unchanged,
including higher dividends and annual earnings growth of 6% to
8%.
In addition, Generali directors approved a new board list late
Monday, including already-announced Andrea Sironi as chairman, as
it heads off a challenge to the leadership of Chief Executive
Philippe Donnet from second-largest shareholder Francesco Gaetano
Caltagirone.
Mr. Caltagirone said last week he plans to propose his own
candidate as CEO.
Write to Ed Frankl at edward.frankl@dowjones.com
(END) Dow Jones Newswires
March 15, 2022 03:55 ET (07:55 GMT)
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