Generali, 1Q2020: P&C combined ratio improved to 89.5%

21 May 2020 —
For the first three months of 2020, Generali Group recorded a net profit of EUR 113 million, 84.8% lower year-on-year. The group's operating result reached EUR 1,448 million, up 7.6%, driven by P&C and Asset Management growths.

Generali 1Q2020 preliminary figures, y-o-y changes

  • Gross written premiums: EUR 19,163 million (+0.3%), of which:
    • GWP Life: EUR 12,323 million (-1.6%)
    • GWP Non-life: EUR 6,841 million (+4.0%)
  • Life net inflows: EUR 3,055 million (-25.2%)
  • Combined ratio: 89.5% (-2.0 pp.)
  • Solvency ratio: 196% (-28 pp.)
  • Consolidated operating result: EUR 1,448 million (+7.6%)
  • Net result: EUR 113 million (-84.8%)

The Group's net profit decrease was mainly reflected in:
  • EUR 655 million in operating and non-operating significant impairments on available for sale financial assets, following the application of accounting standard rules, which resulted from the impact of the Covid-19 pandemic on financial markets. These impairments, mainly non-deductible, led to a higher tax rate, which rose from 30.6% to 61.2%;
  • the non-operating expense amounting to EUR 100 million from the establishment of the Extraordinary International Fund launched by the Group to assist in the Covid-19 emergency;
  • the lower result from discontinued operations, zero in 2020, which was EUR 123 million in the first quarter of last year.

The adjusted net profit stood at EUR 113 million, compared to EUR 616 million at 1Q2019. Excluding the one-off expense of the Extraordinary International Fund for Covid-19, the adjusted net profit stood at EUR 188 million.
The Group's gross written premiums showed a slight increase compared to the previous year (+0.3%), reaching EUR 19,163 million, thanks to the growth in the P&C segment which offset the decline in the Life segment.


The Life operating result was stable (-0.6%), with a good performance of the technical margin, net of insurance operating expenses, being offset by the decline in the net investment result due to the negative impact of financial markets in the reporting period.

The 1.6% decrease in Life premiums reflected a decline in savings and pension products (-13.2%) posted mainly in Italy, France and Asia. The growth in unit-linked products was significant (+20.9%) across the markets in which the Group operates, particularly in France and Italy. The development of the protection business was positive (+0.7%).

The combined effect of the decrease in premiums and increase in payments, particularly surrenders, led to a decline in net inflows which stood at EUR 3.1 billion (-25.2%), especially in Italy, France and Asia.

New business in terms of PVNBP (Present Value of New Business Premiums) stood at EUR 10,996 million, up 2.4%. The increase was due to the growth in unit-linked products (+18.6%) and protection products (+13.8%), which offset the decline in traditional savings and pension products.

Despite the less favorable financial assumptions, the new business margin on PVNBP stood at 4.04%, showing a slight decrease (-0.35 pps) due to a more favorable business mix, continuous improvement in the features of new products and further recalibration of financial guarantees. As a result, the NBV (New Business Value) was EUR 444 million (-5.9%).

Life technical provisions decreased to EUR 363,441 million (-1.6%), reflecting in particular the decline in the unit-linked component (-11.1%) resulting from the performance of the financial markets in the reporting period.

Property & Casualty (P&C)

The P&C operating result increased (+14.6%), driven by the technical performance, which more than offset the decline in the investment result, and by the positive contribution from the recent acquisition of Seguradoras Unidas in Portugal (EUR 34 million).

The combined ratio improved to 89.5%, -2.0 pps compared to 1Q2019, driven by the improvement in the non-catastrophe current year loss ratio posted in both business lines, especially in the motor line. The expense ratio also improved, particularly the administration cost ratio. Natural catastrophe claims in the first quarter amounted to approximately EUR 93 million, equal to 1.7 pps on the combined ratio (0.9 pps in 1Q2019).

Asset Management

The operating result of the Asset Management segment grew (+32.0%), mainly thanks to an increase in operating revenues which amounted to EUR 195 million and, compared to the first quarter last year, benefited from the consolidation of the revenues from the new boutiques. The operating result of this segment would have increased by 24.0% at constant scope.

Total third-party Assets Under Management decreased to EUR 152,872 million (-5.5%), reflecting current financial market conditions as well as the outflows from certain portfolios recorded in the first quarter.

Cristiano Borean, Generali Group CFO, commented:

"In one of the most difficult and uncertain periods in recent decades, with the Covid-19 emergency and its consequent strong macroeconomic and financial impact, our business model has ensured the Group's operating continuity and has allowed us to maintain our role as Life-time Partner to our customers. This is also the result of the ever increasing digitalisation of our processes and products, a multi-channel distribution network that leverages a global agent network, and international diversification. (...) The first three months of the year showed a good operating performance and confirmed the Group's solid capital position. Net profit was affected by impairments due to the current financial markets performance as result of the global pandemic."

More financial information about Generali Group can be found at