(updates with comments on excess capital, RBS's insurance ops, Intesa
Sanpaolo)
MILAN (Thomson Financial) - Assicurazioni Generali SpA said its net profits
rose 27.2 percent to 910.3 million euros, beating market expectations.
Financial analysts were expecting a net profit of 770 million to 819 million
euros.
The insurance company said that gross written premiums fell 0.3 percent to
18.429 billion euros. However, on a like-for-like basis gross premiums rose 0.8
percent.
Life premiums fell 0.2 percent to 12.058 billion euros and non-life dropped
0.3 percent to 6.371 billion.
New business in life annual premium equivalent rose 21.1 percent to 1.365
billion euros.
Meanwhile, net premiums fell to 16.257 billion from 16.303 billion euros a
year earlier and operating profits dropped 15.6 percent to 1.161 billion euros.
But, non-operating results swung to a 148 million euro profit from a 78
million loss thanks to a gain stemming from the transfer of its insurance
business in Eastern Europe to Generali PPF Holding, a joint venture controlled
at 51 percent by Generali and 49 percent by PPF.
In a conference call, CFO Raffaele Agrusti said the capital gain from the
transaction is 280 million euros.
The company also improved its combined ratio -- claims and costs as a
percentage of premiums -- for the non-life business to 93.1 in the first quarter
from 93.9 a year earlier.
Generali said the results, as well as efficiency measures undertaken, make
it confident in achieving its targets.
It added that its excess capital totalled 1.5 billion euros at the end of
March, about 850 million euros less than end-2007.
Agrusti said the figure is volatile and has already increased by about 200
million euros since the end of the quarter.
Under its 2007-09 business plan, Generali forecast a full-year net profit
target of 3.8 billion euros and an operating profit of 6.5 billion euros for
2009.
Regarding the insurance assets that Royal Bank of Scotland is selling,
Agrusti said it examining them but that any acquisition has to be earnings
enhancing.
He added that keeping the Generali group's 5.1 percent stake in Intesa
Sanpaolo SpA is linked to the continuation of the bancassurance deal with the
bank.
The bancassurance accord between Intesa Sanpaolo and Generali's unit
Alleanza Assicurazioni SpA expires end-2009 and talks to renew the deal are
expected to start in the coming months, according to Agrusti.
philip.webster@thomsonreuters.com
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