The rating agency noted that the affirmation of Generali’s rating, three notches above the Italian sovereign rating, reflects the Group’s very strong business profile, which benefits from leading positions in Europe, diversified business lines and relatively low product risk. The rating also reflects Generali’s good financial profile, which is constrained by the exposure to Italian sovereign risk, which affects the assessment of the Group’s asset quality, capital adequacy and financial flexibility.
Generali is the third largest insurance group by premiums in Europe and benefits from significant degree of diversification beyond its home market, Italy, notably via its operations in France and Germany. In 2023, Generali’s French and German operations combined accounted for about one third of the Group’s premium volumes and earnings, on par with its domestic operations.
The Group also benefits from strong product diversification, and a low risk product profile geared towards retail short/medium tailed lines in Property and Casualty (P&C), and unit-linked and hybrid savings as well as protection products in life.
The stable outlook of the Group is in line with the sovereign rating of the Government of Italy (Baa3, stable), which continues to influence the credit quality of Generali, and reflects Moody’s expectation that Generali will maintain the strength of its business and financial profile, the report says.
247 views
