May 21, 2024 06:31 GMT
Generali: Solid Results, Little To Drive Further Spread Outperformance
FINANCIALS
Generali (ASSGEN: Baa2/BBB+) 1Q24 results show good credit stats and revenues but a weaker life margin means pre-tax is only inline with expectations. Financial guidance is unchanged. ASSGEN spreads are 60bp tighter YTD, and 17bp in the last month (€IG insurers: -53bp and -13bp) so there appears little here to see spreads outperform near-term, we feel.
- Key credit stats: solvency ratio is in line with consensus (at 215%), shareholders’ equity similarly (at EUR30.1bn) and the CSM is marginally ahead (at EUR32.2bn). So solid figures here.
- Premiums (revenues) are 12% ahead of consensus (and +21% y/y) but the operating result (pre-tax profit) is only in line as the new business margin fell and was below consensus (3.94% vs. 5.53% expected). Life and asset & wealth were marginal laggards whilst P&C’s result was better (combined ratio 90bp better than consensus). Net profit (ex-disposal gain) is 17% ahead of consensus.
- Guidance: this appears unchanged with the narrative broadly unchanged from the FY23 statement (12-Mar) but with a slightly more bullish macro commentary; global growth “may slow slightly” appears an improvement on “set to moderately slow”.
Conf call is 1100 (London time), listen mode on +39 02 802 0927.
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