Generali says 2021 goals on track after solid first half
(Reuters) — Generali on Tuesday said it was on track to meet full-year targets after Italy's top insurer reported a good performance across all business sectors to slightly beat first-half expectations.
Operating profit rose 10.4% to €3 billion ($3.6 billion) versus the €2.95 billion expected by analysts in a poll provided by the insurer.
Its solvency ratio, a key measure of financial strength for insurers, rose to 231% from 224% but was short of the 235% expected by analysts.
It was still at 231% at the end of July, said Cristiano Borean, head of finance.
Generali said in a statement it would successfully complete its current strategic plan at the end of 2021, and CEO Philippe Donnet would unveil a new plan on Dec. 15.
The Trieste-based insurer, one of Italy's most prized financial assets, is due to appoint a new board next spring and speculation has mounted over Mr. Donnet's future due to tensions among top shareholders.
Milanese merchant bank Mediobanca is the biggest investor in Generali, followed by businessmen Francesco Gaetano Caltagirone and Leonardo Del Vecchio.
Over the past two years, first Mr. Del Vecchio and then Mr. Caltagirone have also emerged as leading shareholders of Mediobanca.
In a first public sign of discontent over the balance of power among shareholders, Mr. Caltagirone in April snubbed the insurer's annual general meeting.
Asked on a media call about reported criticism from Mr. Caltagirone and Mr. Del Vecchio, Mr. Donnet said he would not comment on rumors or speak about boardroom discussions.
“I am focused on doing my job in the interest of all shareholders and preparing the new strategic plan,” he said.
In a sign of support for Mr. Donnet's performance, Generali said its board was pleased with the results achieved “in a particularly challenging environment.”
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