Generali’s net result decreases by 9.3% due to impairments on Russian investments

Written by Adam Cadle

19/05/2022

Generali’s net earnings decreased by 9.3% to  €727m in Q1 2022 compared to Q1 2021 due to the impact of €96m related to Russian fixed income instruments directly held by the group and €40m for the stake in Ingosstrakh.

According to the insurer’s latest financial results, without this impact, the net result would have reached € 863m.

The group’s total assets under management amounted to € 680.5bn, down 4.1% compared to FY2021, mainly due to the performance of financial markets.

Furthermore, the group confirmed its solvency ratio of 237% (227% FY2021). The 10pp increase mainly reflected the positive market variances of the quarter (driven by the rise in interest rates and the narrowing of spreads on government bonds, only partially offset by the fall in the equity market, the increase in volatility and inflation) which, coupled with the sound contribution from normalised capital generation, more than offset the negative impacts deriving from M&A transactions, dividend provision for the period, and the anticipated regulatory changes of the quarter (linked to EIOPA changes on the risk-free reference rates definition).

Gross written premiums increased to € 22.3bn (+6.1%), up in the P&C (+6.4%) and life (+6%) segments. Life net inflows, entirely focused on the unit-linked and protection lines, grew to € 3.9bn (+19.3%).

Generali Group CFO Cristiano Borean commented: "The results for the first quarter confirm the excellent performance of Generali, despite a context characterised by uncertainty due to the conflict in Ukraine. The business development in the most profitable segments demonstrates the group’s ability to consistently generate value, while maintaining a solid and industry leading capital position. In the first three months of the year, the group also launched the new strategic plan 'Lifetime Partner 24: Driving Growth', focused on strong growth in earnings per share, increased cash generation and higher dividends.”

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