Generali Sets 2025 Profit Record, Dividend and Solvency Exceed Expectations

Investing.com - Assicurazioni Generali SpA (BIT:GASI) announced record full-year operating performance and adjusted net profit on Thursday, with its solvency ratio and dividend per share exceeding analyst expectations. The Italian insurance company also warned that attacks by the US and Israel on Iran could pose economic risks.

The group’s 2025 combined operating performance is expected to grow by 9.7%, reaching €8 billion, with adjusted net profit rising by 14.5% to a record €4.32 billion. Total underwriting premiums increased by 3.6% to €98.1 billion.

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The board proposed a dividend of €1.64 per share, up 14.7%, above the market forecast of €1.59, payable starting May 20, 2026. It also proposed a €500 million share buyback, subject to approval by shareholders and regulators.

“We achieved a record 2025 performance, marking the first year of our strategic plan ‘Lifetime Partner 27: Pursuit of Excellence’ as a huge success, confirming our commitment to creating ongoing value for all stakeholders,” said CEO Philippe Donnet.

The Solvency II ratio increased from 210% at the end of 2024 to 219%, surpassing the market expectation of 212%, supported by standardized capital generation of €5.2 billion, up 7.9%.

Property and casualty insurance operating profit surged 20% to €3.66 billion. The combined cost ratio improved by 1.4 percentage points to 92.6%, driven by natural disaster losses decreasing from €1.2 billion in 2024 to €593 million.

Life insurance operating profit grew by 4.3% to €4.15 billion. Net inflows soared 42.5% to €13.49 billion. New business value increased by 6.2% to €3.15 billion, beating the market forecast of €3.05 billion, while contract service margins grew by 11% to €33.6 billion, exceeding the market expectation of €32.3 billion.

Total assets under management reached €900 billion, up 4.3%, with net inflows of €16.2 billion. The asset management division contributed €662 million to operating profit, up 7.5%, while Banca Generali declined 5.1% to €532 million due to lower performance fees.

The holding company recorded an operating loss of €610 million, higher than €536 million in 2024, partly reflecting costs related to strategic projects. Adjusted earnings per share increased by 16.2% to €2.85.

Generali stated that attacks by the US and Israel on Iran could drag down the global economy, estimating that in a limited escalation scenario, Eurozone GDP could be affected by 0.2 to 0.3 percentage points, and warned that long-term escalation could pose stagflation risks.

The group aims to achieve a compound annual growth rate of 8% to 10% in earnings per share by 2027, with cumulative dividends exceeding €7 billion during the same period.

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