Italian insurer Generali has reported growth in its consolidated operating result of 8.6% to €2.1 billion for the first quarter of 2025, driven by all business segments, notably its Property and Casualty (P&C) arm as the combined ratio strengthened by 1.4 percentage points year on year to 89.7%.
Generali’s P&C business generated an operating result of more than €1 billion in Q1’25, up from €867 million a year earlier, as the Life operating result rose to €992 million from €962 million, the Asset & Wealth Management operating result increased to €272 million from €263 million, partially offset by a steeper loss of €150 million in Holding and other business.
Group-wide, gross written premiums (GWP) in Q1’25 reached €26.5 billion, growth of 0.2% year on year, driven by the strong performance of P&C of 8.6%, especially in non-motor. Life net inflows recorded robust growth, exceeding €3 billion, a 30.4% increase on the prior year, primarily driven by Italy and Germany, with the former also showing a material improvement in terms of lapses.
In the P&C segment, GWP grew to €10.4 billion due to a positive performance in both business lines. Non-motor increased by 8.9%, meanwhile, Europ Assistance premiums grew by 16%, driven by a new partnership in Australia. The Motor line rose by 7.2% across all dominant areas, especially in Germany, Italy, France, Austria, and CEE.
The P&C combined ratio improved to 89.7% from 91% in Q1’24 due to positive development of the loss ratio to 60.8%, a decrease of 0.9 percentage points year on year. The segment’s expense ratio for Q1’25 also decreased to 28.9% because of a lower incidence of administrative costs.
The operating insurance service result grew to €865 million in Q1’25 compared to €685 million in Q1’24, due to improved profitability and higher business volumes, despite a lower discounting effect of €198 million.
In the Group’s Life segment, GWP decreased by 4.5% to €16.2 billion in Q1’25, compared to a particularly strong first quarter in 2024, during which targeted commercial actions were implemented to sustain net inflows in Italy and France and extraordinary new production was recorded in Asia.
In Q1’25, the segment’s new business volumes decreased by 9.3% to €17.3 billion, while the New Business Value amounted to €822 million, also a decrease of 4%, reflecting lower volumes, despite the increased profitability of new business production.
The Life operating investment result hit €176 million compared to €227 million in Q1’24, reflecting in Argentina both significantly lower inflation and the reallocation of Life excess capital to P&C. It should be noted, the investment result for this quarter also saw a lower contribution from investment funds compared to Q1’24, due to a timing difference in dividend distributions and was affected by higher insurance finance expenses.
All in all, Generali’s adjusted net result increased to €1.2 billion for Q1’25, a 7.6% year on year increase, while the adjusted EPS rose even more strongly to €0.79, a 9.4% increase.
The insurer has confirmed its solid capital position, with Solvency Ratio at 210%.
Cristiano Borean, Group Chief Financial Officer, Generali, commented, “In this first quarter, Generali achieved continued strong growth in both operating and adjusted net result, showing a very positive start to our new strategic plan ‘Lifetime Partner 27: Driving Excellence’ thanks to the contribution of all business segments.
“Our P&C business benefited from healthy top-line growth, mainly driven by the Non-Motor line, as well as from a continued improvement in the Combined Ratio. The Life business recorded significant net inflows, with our preferred areas of Protection & Health and Hybrid & Unit-Linked both performing strongly.
“Asset & Wealth Management provided a solid contribution to the Group operating result, mainly supported by the consolidation of Conning Holdings Limited. Our diversified profit sources and solid capital position driven by excellent cash generation will allow the Group to successfully implement the new strategic plan and create value for all our stakeholders.”
