Growing operating results
Generali‘s stock recorded a significant increase in the stock market, with an increase of more than 4% after the publication of the financial results for the third quarter, which exceeded market expectations. The group’s operating result rose to €5.4 billion, an increase of 7.9% compared to the same period of the previous year. This growth was mainly supported by the Life and Asset & Wealth Management segments, which demonstrated remarkable strength in a complex economic environment
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Business segment performance
Cristiano Borean, CFO of Generali, emphasized that the growth in operating income was fueled by all business segments. In particular, the Life segment showed a very positive trend in net inflows, while the Non-Life segment recorded an increase in profitability despite the impact of natural disasters. In addition, the Asset & Wealth Management segment contributed significantly to the results, with an increase in operating income to €837 million, equal to an increase of 20.1%
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Analysis of revenues and costs
Operating revenues showed a positive development, with an increase of 25.5%. However, operating costs increased to €563 million, reflecting the contribution of Conning Holdings Limited. Despite this, the normalized net profit of the Asset Management segment amounted to €236 million, showing a slight decline due to non-recurring costs related to the acquisition of CHL. The assets under management (AUM) managed by Asset Management companies reached €681 billion, an increase of 32.0% compared to the previous
year.
Future prospects and analysts’ assessments
The outlook for Generali remains positive, with the group preparing to present a new strategy next January. Citi and Goldman Sachs analysts expressed favorable assessments of the results, highlighting a significant improvement in the non-life sector and a more favorable cost/premium ratio. Morgan Stanley confirmed the company’s’ overweight ‘assessment, suggesting that current results set the stage for a three-year plan that will start in 2025. Net inflows in the third quarter showed a positive sign, with €1.9 billion in net inflows, highlighting the group’s resilience in a constantly evolving market
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