Generali Group, 2021: positive growth across all segments; new strategic plan launched for the period until 2024

17 March 2022 — Daniela GHETU
The Generali Group's operating result was, for the third consecutive year, its best ever performance, reaching EUR 5,852 million, 12.4% up y-o-y thanks to positive growth across all segments.

Presenting the 2021 full-year financial results, Generali Group's CEO Philippe Donnet announced the successful conclusion of the 'Generali 2021' strategic plan. He said that Generali is now effectively implementing the new strategy 'Lifetime Partner 24: Driving Growth,' focused on sustainable growth, an enhanced earnings profile, and the creation of value for all stakeholders. However, in respect to forecasts of a further recovery in the global economy in 2022, the recent Russian-Ukrainian conflict has resulted in a context of greater uncertainty and volatility and a risk of a downward revision of growth estimates. To date, the development of the conflict remains unpredictable and consequently it is not possible to make a reasonable estimate of the effect of the crisis on the markets and on the insurance business

"In line with the Group's Lifetime Partner ambition, and as with the Covid-19 pandemic, Generali and its employees have taken immediate action to support the communities impacted by the war in Ukraine. The Company has decided to donate EUR 3 million to support refugee programs, including a donation to UNHCR, which is currently at the forefront of the humanitarian response in the country. An employee donation campaign is also underway, with donations matched 1:1 by Generali, which will be given to UNICEF in support of the work that it will carry out to help impacted families," Donnet stressed out.

The Life and P&C segments confirmed excellent technical profitability with the New Business Margin at 4.52% (+0.57 p.p.) and the Combined Ratio was the best and least volatile among peers at 90.8% (+1.7 p.p.).

The operating result of the Asset Management segment rose to EUR 672 million (EUR 546 million FY2020). This growth was mainly boosted by operating revenues, in particular thanks to the overall increase of assets under management and the continued expansion of the real assets strategy.

The Group's non-operating result was EUR -1,306 million (EUR -1,848 million FY2020). Impairments on available for sale investments reduced - mainly in the equity component - which amounted to EUR -251 million (EUR -530 million FY2020). Net realized gains reached EUR 368 million (EUR 32 million FY2020), driven by real estate transactions. The non-operating result was also affected by the overall positive contribution deriving from the acquisition of control of the Cattolica Group for EUR 198 million and the extraordinary costs of EUR 212 million3 related to its integration. It should be noted that in 2020, in particular, non-operational expenses included the establishment of the Extraordinary International Fund launched by the Group to deal with the Covid-19 emergency in support of national healthcare systems and the economic recovery, further local initiatives in the main countries of operation and, in France, an extraordinary obligatory contribution to the national healthcare system requested of the insurance sector.

The net result grew significantly to reach EUR 2,847 million (EUR 1,744 million FY2020) thanks in particular to the positive improvement in operating and non-operating results. The adjusted net result - excluding EUR 52 million relating to the acquisition of control of the Cattolica Group and extraordinary costs related to its integration - increased to EUR 2,795 million (+45.1%, EUR 1,926 million FY2020, which neutralised EUR 183 million from the settlement agreement for the sale of BSI)4.

Gross written premiums of the Group amounted to EUR 75,825 million (+6.4%) with a positive contribution from both the Life (+6.0%)5 and P&C (+7.0%) segments. Life net inflows grew by 4.4% to reach EUR 12.7 billion, entirely focused on the unit-linked and protection lines. Life Technical Reserves increased to EUR 424 billion (+10.3%).

The Group had Total Assets Under Management equal to EUR 710 billion (+8.4%)6.

Also thanks to these results the Group has successfully concluded the 'Generali 2021' strategic plan in a market environment characterized by Covid-19.

This includes the financial targets:

  • Growing earnings per share: 7.6% (Target: 6%-8% EPS CAGR range 2018-20217);
  • Growing dividend: EUR 4.52 billion (Target: EUR 4.5-5.0 billion cumulative dividend pay-out);
  • Higher return for shareholders: the Return on Equity was 12.4% and 12.1% in 2019 and 2021 respectively. Excluding the 2020 RoE which was impacted by Covid-19 and one-offs, the average RoE was above the target of > 11.5%.
You may read a comprehensive analysis of the Generali Group's results in 2021 in the Group's website

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