Assicurazioni Generali SpA’s second-quarter profit fell 24% from a year earlier, as claims from storms and flooding in Europe weighed on results.
Net income in the three months through June declined to €797 million ($870 million) missing the €881 million average estimate compiled by Bloomberg. A decline in non-life operating income more than offset higher operating profit in the life segment and asset and wealth management, the Trieste-based company said in a statement on Friday.
The net income result was also affected by the comparison with the previous year when capital gains buoyed profit.
Chief Executive Officer Philippe Donnet is focusing on insurance segments with high margins as he seeks to follow through on a pledge to achieve annual earnings per share growth between 6% and 8% in the period 2021-2024. The executive is working on a new strategy set to be announced on Jan. 30, which will envisage higher dividends.
Generali said that its non-life operating income declined 14% from a year earlier hurt by natural catastrophes and a lower benefit from discounting. In the quarter storms and flooding in Germany, Italy, Austria, and the Czech Republic as well as riots in the French overseas territory of New Caledonia boosted claims for damages at European insurers, according to analysts.
Operating income at Generali’s life insurance business, as well as the asset and wealth management segment rose, with the latter boosted by last year’s acquisition of Cathay Life unit Conning Holdings Ltd.
Topics Profit Loss Flood Europe
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