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Generalis profit exceeds expectations | Business insurance



(Reuters) – Generali, Italy's leading insurance company, beat market expectations with its nine-month results on Thursday as its life and asset management segments performed well, saying it has around € 1 billion left to distribute while continuing to watch M&A

The company will update the market on how it plans to use its available capital on December 15 when it will present a new three-year strategic plan, CFO Cristiano Borean said in a post-results media interview.

CEO Philippe Donnet, whose term expires next April, has been blamed by two major shareholders – Italian businessmen Francesco Gaetano Caltagirone and Leonardo Del Vecchio – who have criticized his M&A strategy for being too shy and want Generali to grow.

Generali earmarked up to € 4 billion ($ 4.63 billion) for M&A under a three-year strategic plan ending this year. [1

9659002] Following a number of acquisitions in Portugal, Greece, Eastern Europe and Malaysia, the insurance company frequent last month completed a € 1.17 billion takeover of its smaller competitor Cattolica in a move aimed at consolidating its domestic market leadership.

We are still evaluating any M&A opportunities that are compatible with our discipline. But M&A is not a must, Borean said when asked if this capital could also be used for a share repurchase.

Generalis' nine-month net profit rose 74% to 2.25 billion euros ($ 2.60 billion), above average forecast of € 2.13 billion in an analyst consensus from the company.

Its shares have risen 35% this year and rose 1.6% in early trading on Thursday.

While its life and asset management business performed well, non-life insurance The business proved resilient despite the major effects of natural disasters, the company said in a statement.

Its operating profit also exceeded analysts' consensus as it rose by 10% to € 4.4 billion. Generalis' solvency ratio, which measures the company's financial strength, was 233% on November 8, slightly increasing from 231% at the end of July and 224% at the end of 2020.

The insurer confirmed its target of annual compound growth 2018-2021 of earnings per share of between 6% and 8%. Return on equity is expected to be higher than 11.5%.


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