Generali said that the Q1 2020 net profit was impacted by €655m in net impairments on investments and €100m allocated for Extraordinary International Fund to help with Covid-19 response
Generali building in Trieste, Italy. (Credit: Massimo Goina/Assicurazioni Generali S.p.A.)
Generali reported an 81.7% decline in its net profit for the first quarter of 2020 (Q1 2020) at €113m compared to €616m made in the same quarter in 2019.
The Italian insurance group said that the Q1 2020 net profit was impacted by €655m in net impairments on investments, owing to the effect of Covid-19 on financial markets, and also the contribution of €100m allocated by it to the Extraordinary International Fund for the pandemic emergency.
Besides, there was no contribution from disposals during the first quarter of this year that ended 31 March compared to a €128m gain in Q1 2019, said the insurance group.
Generali has seen a 7.6% increase in its consolidated operating result for the first quarter of 2020 at €1.44bn, compared to €1.34bn made in the same quarter in 2019. The group attributed the growth to the contribution from the property and casualty (P&C) and asset management units, that also included the recently made acquisitions, and also from the holding and other businesses segment.
The consolidated operating result for the life segment in Q1 2020 came down by 0.6% to €799m compared to €804m in Q1 2019. For the property and casualty segment, the consolidated operating result surged 14.6% from €548m in Q1 2019 to €627m in the reported quarter.
The gross written premiums of the Italian insurer remained more or less the same at €19.16bn in Q1 2020 compared to what was reported in the previous year quarter.
In the life insurance business, the gross written premiums were down by 1.6% at €12.32bn in Q1 2020 compared to €12.5bn. In the property and casualty segment, the gross written premiums were up by 4% to €6.84bn in the reported quarter compared to €6.37bn in Q1 2019.
Generali CFO comments on Q1 2020 results
Generali Group CFO Cristiano Borean said: “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.”