“These excellent results sign the successful conclusion of our 2021 strategic plan, demonstrating once once more that we are keeping our promises,” commented Generali boss Philippe Donnet.
The number one insurance company in Italy, Generali, announced on Tuesday a sharp increase of 63.3% in its net profit in 2021 to 2.84 billion euros (2.9 billion francs), reflecting a clear recovery of its activity following a year 2020 marked by the health crisis.
The group also published a “record” operating profit of 5.85 billion euros, up 12.4%, exceeding the expectations of analysts who had expected 5.69 billion euros, according to the consensus compiled by Generali.
These “excellent results” sign “the successful conclusion of our 2021 strategic plan, demonstrating once once more that we are keeping our promises”, commented the boss of Generali, Philippe Donnet, quoted in a press release.
In 2020, the insurer had suffered a 34.7% drop in net profit, to 1.74 billion euros, due to the effects on the economy of the coronavirus pandemic.
Last year, operating profit was supported by growth in life insurance (+7.2%), property and casualty (+7.9%) and asset management (+22.9%). %).
The entry of gross premiums – the equivalent of turnover – increased by 6.4% to 75.82 billion euros, an increase once more higher than analysts’ expectations who had forecast 73.62 billion.
The group has confirmed the forecasts of its new strategic plan, namely an increase in earnings per share of 6 to 8% per year and the distribution of 5.2 to 5.6 billion euros to its shareholders by 2024 , in the form of dividends.
The economic solvency ratio of the third European insurer in terms of market capitalization rose to 227% at the end of December, once morest 224% a year earlier.
Regarding the invasion of Ukraine by Russia, Generali underlined that “the evolution of the conflict remains unpredictable” and that it was therefore impossible “to reasonably estimate the effect of the crisis on the markets and the activities of ‘assurance”.
Generali announced in early March its gradual withdrawal from Russia, with the closure of its representation in Moscow and the forthcoming cessation of activity of its Europ Assistance subsidiary.
The group also withdrew from the board of directors of the Russian insurer Ingosstrakh, of which it holds a 38.5% share.
Generali’s board of directors on Monday approved a list of thirteen candidates for its renewal in April, including Philippe Donnet, who is seeking a third term.
The list will be put to the vote of the general meeting of shareholders scheduled for April 29 and will compete with another that is being drawn up by construction magnate Francesco Gaetano Caltagirone, Generali’s second largest shareholder with a share of 8%.
Mr Caltagirone and his ally Leonardo Del Vecchio, founder of eyewear maker Luxottica, which owns a 6.6% share, oppose Mr Donnet’s reappointment and are vying for control of the insurer with Mediobanca, principal shareholder with 12.8% of the capital but 17.2% of the voting rights.
