Generali's solvency ratios increase; total AUM level increases by 2.3%

Written by Adam Cadle

03/08/2017

Generali Group's preliminary regulatory solvency ratio based on the use of an internal model stood at 188% up from 178% FY 2016.

The trend is due to normalised generation of capital, net of the accrued dividend for the current year, and the positive trend of financial markets.

The economic solvency ratio , which represents the economic view of the group's capital and is calculated by applying the internal model to the entire group perimeter, stood at 207% (194% FY 2016).

Group total assets under management recorded an increase of 2.3% as at 30 June 2017, up to €541.3bn.

Total investments, amounting to €397.9bn, recorded an increase of 0.6%, mainly due to the increase in cash and cash equivalents and the rise in the equity sector owing to the recovery in share prices.

The bond portfolio showed a slight decrease in relation to the increase in interest rates, which more than offset the net purchases in the period, concentrated on government bonds in particular.

Other investments registered an increase due mainly to the rise in the value of derivatives. With reference to cash and cash equivalents, the former remained substantially stable, while the latter item recorded an increase, mainly due to the increase in repurchase agreements, used to hedge some group companies’ exposure to currency risk.

Investment properties remained substantially stable. The investment strategy for fixed-income investments aims at portfolio diversification, in both government bonds and corporate bonds.

"The objective is to ensure adequate returns for the policyholders and a satisfactory return on capital, while maintaining a controlled risk profile. Equity and investment property exposure will be kept substantially stable," the group said.

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