Generali profit rises despite catastrophe losses

TRIESTE, Italy—Assicurazioni Generali S.p.A.'s first-quarter profits soared to €527 million ($670.9 million) from €104 million ($132.4 million) a year ago on strong life insurance results that offset catastrophe losses.

The Trieste, Italy-based insurer said Wednesday that its earnings were driven by life insurance operating profits that increased 60.8% to €866 million ($1.1 billion) in this year's first quarter. Gross written life premiums totaled €14.21 billion ($18.09 billion), a 25.7% increase from 2009's first quarter.

Generali said its operating profit on nonlife business fell 25% to €334.9 million ($426.4 million) during the first quarter. Gross written premiums on nonlife business were up slightly to €6.65 billion ($8.47 billion) from €6.59 billion ($8.39 billion) a year earlier.

The insurer's nonlife combined ratio worsened to 98% in the first quarter from 96.3% in the first quarter of 2009. Generali said catastrophe losses had a €115 million ($146.4 million) negative impact on the nonlife operating result.