Generali
Note: This is a daily stock update and the information stands true as of 13/03/25, 09:00 CET.
Company Update:
Momentum remains good in insurance, even though the beat is somewhat limited. There is a battle around Generali even though the seat of M Donnet looks secured for the time being. But ahead of the AGM we still expect a buying pressure to try to secure voting rights to replace members of the board. As a reminder, M Caltagirone is seeking to cancel the deal with Natixis IM and to do that he needs more board members aligned with his views. Despite the recent share price performance, we would stick to it for the time being. Stock trades on a PE25 and 26 of 12.0 and 11.2x respectively.
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Company Update:
Strong gross written premiums (GWP) growth, up 14.9% in FY24 to €95.2bn, with Life up 19.2% and P&C up 7.7%. GWP were 4% ahead of consensus in Q4, exceeding expectations in both the Life and P&C segments.
FY24 operating result of €7,295m (+8.2% y/y) was 1% ahead of consensus, mainly driven by P&C and Asset and Wealth Management, while the life operating result was slightly below expectations, due to a lower CSM.
The P&C combined ratio was in line at 94.0%.
Adjusted net result of €3,769m, up 5.4%, in line with expectations, while the reported net result of €3,724m was 2.6% below consensus, due to non-operating result of €668m.
Dividend announced at €1.43, up 11.7% vs 2023.
Expert Opinion: Momentum remains good in insurance, even though the beat is somewhat limited. There is a battle around Generali even though the seat of M Donnet looks secured for the time being. But ahead of the AGM we still expect a buying pressure to try to secure voting rights to replace members of the board. As a reminder, M Caltagirone is seeking to cancel the deal with Natixis IM and to do that he needs more board members aligned with his views. Despite the recent share price performance, we would stick to it for the time being. Stock trades on a PE25 and 26 of 12.0 and 11.2x respectively.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
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Solid start of 2025 with signs of recovery in key markets.