Generali Global Corporate & Commercial (Generali GC&C), the Italian group’s industrial and corporate insurance arm, achieved overall price increases of 16% during the first nine months of this year compared to the same period last year, and helped the group deliver impressive growth numbers announced this week.
During an analyst call to discuss the nine-month figures, Cristiano Borean, chief financial officer, singled out GC&C as a leading contributor to the growth figures. France was also identified as a good growth market, on a territorial basis.
Overall gross written premiums increased to €54.9bn (+6.4%), supported by both the life segment (+6.5%) and the P&C segment (+6.2%).
“[We] observed a good growth of premium in Italy France, Austria, central and eastern Europe (CEE), and Russia, as well in the international area. It is also slightly positive in Germany all over the board,” said Borean.
“Don’t forget that there is a growth of… global corporate commercial, which is playing as a hub for the group, and this is a very profitable 16% premium increase business observed so far on that line, plus the growth of the new motor,” he continued, as reported by results service SeekingAlpha.
“The other good growth, which we are observing in France, is pricing driven in the non-motor environment, plus some growth of the health lines and as well a good development in the motor segment, thanks also to the contribution of partnership and fleet, and also, still a good pricing momentum,” added Borean.
Generali’s big German business reported slightly lower growth than most because the pricing environment is not so strong for overall P&C business, said the group.
The CEE region is doing well for Generali. “Austria, CEE and Russia are growing well, both in motor and non-motor, and this is driving a very good growth in what you know is our most profitable region,” said Borean.
The Generali leadership were also asked by analysts for an update on the recent acquisition of a majority stake in fellow Italian insurer Cattolica.
Borean explained that the tender offer has been successfully executed, which means that Generali now owns slightly less than 84.5% of Cattolica. The next move is to delist Cattolica shares through a merger. Once approvals are received from shareholders and the Italian insurance supervisor, the company will be fully integrated within the group.
The incorporation of Cattolica’s business into the nine-month results, using the equity method accounting since the first time its figures were booked in its balance sheet, contributed €70m.
Borean stressed that the addition of Cattolica would further strengthen Generali’s position in the highly profitable Italian P&C market. “In the case of Cattolica, we already commented, it was to get the number one position in one of the most profitable P&C markets of the world, which is Italy,” he said.