Assicurazioni Generali, the Italian insurer, has reported a significant increase in profit for the first half of the year, driven by strong growth in its property and casualty segment. The company recorded a net profit of 2.24 billion euros ($2.45 billion) during this period, compared to EUR864 million in the previous year.
Growth in Gross Written Premiums
In the first six months of 2020, Generali's gross written premiums reached EUR42.24 billion, marking a 3.6% increase compared to the same period last year. This result exceeded the analysts' expectations of EUR42.17 billion. The company's consolidated operating result also saw a significant boost, rising by 28% to EUR3.72 billion, surpassing expectations of EUR3.46 billion.
Strong Performance in Property and Casualty Segment
Generali's success in the first half of 2020 can be largely attributed to its property and casualty segment, which experienced remarkable growth of 86%. This growth was primarily driven by double-digit increases in premiums across both non-motor and motor business lines.
Life Segment Faces Challenges
While Generali's property and casualty segment thrived, its life segment faced some challenges. The operating result for this segment contracted by 3.5% to EUR1.81 billion. The company also experienced net life segment outflows of EUR877 million during this period.
Capital Strength Remains Solid
Generali's solvency ratio, a key measure of capital strength, stood at an impressive 228% at the end of the reporting period. This indicates the company's robust financial position and its ability to withstand potential risks and uncertainties.
With strong profit growth driven by its property and casualty segment, Assicurazioni Generali has showcased its resilience and adaptability in a challenging economic climate. The company's solid performance in the first half of 2020 sets a promising foundation for future success.