Generali's nine-month profit up despite €1.5 billion disaster hit (updated)

Banca Monte dei Paschi di Siena SpA

Yesterday 08:37

Recasts with details from statement and post-results briefing
MILAN, Nov 13 (Reuters) - Italy's biggest insurer Generali GASI.MI reported higher nine-month profits on Friday despite a €1.5 billion ($1.7 billion) hit from natural disasters and said it was on track to exceed the targets in its three-year plan ending in 2027. 
Operating profit rose 8.5% to €6.45 billion, while adjusted net profit climbed 12% to €3.7 billion. Both figures were broadly in line with a company-provided analyst consensus 
More than €800 million of the natural disaster losses were related to the third quarter, finance chief Cristiano Borean told reporters
The combined impact of natural disasters and €323 million in  man-made losses was €1.1 billion higher than a year ago, Borean said
"We expect very few additional impacts from natural disasters this quarter; any impact will be largely offset by the coverage we have in place," he added
Natural catastrophes and man-made losses worsened the non-life business's undiscounted combined ratio, a measure of underwriting profitability, by 0.9 percentage points to 95.1%, versus a consensus forecast of 94.8%
Generali is caught up in Italy's financial-sector takeover battle as Intesa Sanpaolo ISP.MI seeks to buy Monte dei Paschi (MPS) BMPS.MI, which owns a 13% stake in the insurer through Mediobanca MDBI.MI 
Asked about Intesa's bid for MPS, Borean said: "We are focused on our strategy. We speak through our numbers and will continue to do so" 
Generali's solvency ratio was 211% at end-September, down from 219% at end-2025, reflecting increased market volatility and wider spreads on government bonds, Borean said
The ratio is broadly unchanged as of Friday, he added 
"We have great confidence in our ability to exceed all the goals of our strategic plan," Borean said 
Generali's 2027 plan targets annual earnings per share growth of 8% to 10% and more than €7 billion in cumulative dividends
($1 = 0.9042 euros)

 (Reporting by Gianluca Semeraro. Editing by Giulia Segreti and Mark Potter)
 ((gianluca.semeraro@tr.com; +39 06 80 307 741;))