Generali combined ratio improves to 89.7% in Q1 2025

By Michael Jones

May 22 - (The Insurer) - Generali's combined ratio improved by 1.4 percentage points to 89.7% in the first quarter of 2025, the company said on Thursday.

KBW analyst William Hawkins said this "eye-catching beat" came as lighter-than-expected natural catastrophes and positive reserve development positively affected the combined ratio by 1.9 points.

Generali's P&C operating result increased by 18.7% year on year to 1.0 billion euros ($1.2 billion).

This was driven by a 39% increase in the undiscounted operating insurance service result to 667 million euros, which Generali said was enabled by robust top-line expansion and continued margin improvement.

Generali's consolidated operating profit rose 8.9% year on year to 2.1 billion euros, driven by the improved P&C operating result.

Gross written premiums in the P&C segment increased by 8.6% to 10.4 billion euros for the first quarter, supported by 8.9% growth in non-motor, 7.2% in motor and 16% growth in Europ Assistance premiums.

P&C operating investment income of 351 million euros was down 44 million euros compared with the prior-year period. Generali said this reduction was entirely related to Argentina due to a very significant decline in the local inflation rate.

The group adjusted net result increased by 7.6% year on year to 1.2 billion euros.

Shareholders' equity increased 2.3% to 31.1 billion euros, while the contractual service margin climbed 1.28% to 31.6 billion euros.