Generali, which on Wednesday will kick off its first share buyback in 15 years, reported a first half net profit of 1.4 billion euros ($1.4 billion), above a company-gathered analyst consensus of 1.33 billion euros.
Net profit fell 9% year-on-year after a 138-million-euro impairment on the company’s exposure to Russia.
“Generali’s life business is the standout performer year-to-date … driving a material beat to earnings expectations,” Jefferies analysts said.
Generali confirmed all targets under its 2022-2024 strategic plan, including an average compound earnings per share growth of 6%-8%.
The insurer has been buffeted over the past year by a boardroom battle that saw two of its top three investors challenge the reappointment of CEO Philippe Donnet.
“Results showed that implementing our strategic plan is the right way to achieve sustainable growth and to increase our operating profitability” despite growing macroeconomic and geopolitical uncertainties, Donnet told a press briefing.
Closely watched net operating profit rose 4.8% from a year earlier to 3.14 billion euros, above a 2.96 billion euro consensus forecast.
Shares in the insurer fell 1.4% by 0745 GMT slightly underperforming a negative European insurance sector, with traders saying the stock had outperformed over the past three days.
Source: Reuters
