Generali 9-month profit rises 27%
(Reuters) — Italian insurer Assicurazioni Generali SpA on Thursday said its net income in the first nine months of the year rose 26.8% to beat expectations, lifted by stronger life premiums and disposals.
Net profit reached €1.86 billion ($2 billion), above a consensus analyst forecast provided by the company of €1.83 billion.
Gross premiums rose 6.1% to €49.7 billion, with a 7.8% increase in its life business.
The group’s economic solvency ratio — a measure of financial strength — came in at 221%, in line with levels at the end of June, but below 230% at the end of last year.
Chief Financial Officer Cristiano Borean said the insurer’s capital position remained solid, despite volatility in the financial markets during the year.
Government bonds have come under pressure as Italy’s new ruling coalition looks to borrow to fund increased welfare spending and tax cuts.
Generali, which is due to present its new plan on Nov. 21, holds around €60 billion of Italian state bonds.
The European Commission has asked Italy, which is targeting a deficit of 2.4% of gross domestic product next year, to modify its draft budget, but so far Rome has shown no sign of complying.
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