(Reuters) — Italian insurer Assicurazioni Generali S.p.A. reported a better-than-expected 12.8% rise in operating profit for the first nine months of the year thanks to a solid performance on all fronts, and said it was on track for an increase for the year.
Europe's third-largest insurer by market value said its nine-month operating profit rose to €3.68 billion ($4.61 billion), above the consensus forecast given by analysts in a company survey of €3.62 billion ($4.53 billion).
"As the group works hard to fulfill the strategic plan, we expect the operating result at year-end to improve with respect to the previous year," Chief Financial Officer Alberto Minali said.
Italy's biggest insurer also said its closely watched Solvency I capital adequacy ratio stood at 160% at the end of September, up from 141% at the end of 2013.
The second quarter marked the end of an intense phase of disposals for Generali that helped it boost its capital base, allowing it to fully focus on its operating performance.
Besides delivering on its disposal program, Generali has reduced debt and is in the process of executing a €2 billion ($2.51 billion) efficiency program.
Just two weeks ahead of a much-awaited investor day on Nov. 19, the insurer said its premium income in the first nine months stood at €51.3 billion ($64.24 billion), lifted by a 9.6% rise in life business with a 39% growth in linked products and strong performances in Italy and France.
The group's combined ratio of costs and claims to premium income in the nonlife sector improved to 93.6% at the end of September from 95% at the end of the same month last year.
Earlier on Thursday, Generali announced a buyback of three series of hybrid bonds to reduce interest costs and optimize regulatory capital structures.
Italy's Assicurazioni Generali S.p.A. is holding exclusive talks with Brazil-based Grupo BTG Pactual S.A. for a potential sale of BSI S.A., a Swiss private bank controlled by Generali, Reuters reported.