Trieste - Generali Insurance group closes a record second quarter with net income up sharply to 1.3 billion (+21.6%) and an operating profit up 11.3% to 2.8 billion, the best in the past eight years. The forecast for the end of 2015, according to CEO, Mario Greco, points, “to significant strengthening in net income compared to 2014, maintaining the high growth in profitability achieved in the first half,” highlighting the transformation of the group, “in just three years we have achieved one of the most challenging turnarounds ever in the insurance industry. The excellent results of the first half - he explains - show how Generali has moved on, despite an extremely difficult economic environment, to become a very profitable international group with a solid capital position.”
The Italian insurer, added Mr. Greco, will continue to focus on organic growth and has, “neither the financial nor strategic need to look at acquisitions.” Results for the first six months of 2015 represent “the best basis” for the implementation of the new strategic plan, which aims at a cash flow growth of 50%, to distribute more than five billion in dividend in four years, and achieve a 500 million cost reduction program between 2016 and 2018, with the objective of reaching over 13% in operating profitability on capital. In detail, figures show an increase of 7.3% in gross premiums to more than 38 billion, thanks to the increase in life insurance premiums (+10.6%), which rose to 26.906 million, with growth in all major sectors thanks to an excellent performance of unit-linked type policies (+25.7%). The life insurance segment improved its operating result (+13.2% to 1.713 million) and the “Damages” sector saw an increase in operating income to 1,103 million (+2.3%). Total capital held reached solid levels of 23.3 billion (+0.3%) and the Economic Solvency ratio amounted to 200%, up 14 basis points from the end of 2014.
The group’s Solvency I index stood at 164% on a pro forma basis, including the effects of the sale of BSI (unchanged from 2014). The Generale Assicurazioni company, pointed out Mr. Greco, is not concerned with sharp fluctuations in China’s stock markets because, “we sold Chinese stocks at the right time and avoided the collapse.” Regarding equity investments in Italy, “we have dropped Telecom,” and “our share in RCS is very small, but I do not know precisely how small.”