Italian insurance group Assicurazioni Generali SpA (ARZGY.PK) reported Thursday that its net profit for the first half of the year fell 56.7 percent to 774 million euros from last year’s 1.79billion euros.
The net profit reflects 226 million euro of net impairments on investments related to the performance of the financial markets, 183 million euros for the arbitration settlement for the sale of BSI and the contribution of 1002 million euros to the Extraordinary International Fund for the pandemic emergency.
Adjusted net earnings per share fell 27.1 percent to 0.61 euros from 0.84 euros a year ago.
Consolidated operating result was 2.714 billion euros, down 0.4 percent from 2.724 billion euros last year, with an increase in the P&C and Asset Management businesses, supported also by recent acquisitions, and in the Holding and other businesses, which offset a decrease in the Life segment.
Total gross written premiums rose 1.2 percent to 36.48 billion euros from 35.73 billion euros last year. The results reflect the positive performance of the Life and P&C businesses.
Looking ahead, Generali Group expects its operating result to be resilient in 2020, even though probably lower than in 2019. From an operational standpoint, the macroeconomic consequences of Covid-19 will have a negative impact on the evolution of the Group’s premiums, especially in travel insurance.
With the view to mitigate the impact of the forecast reduction of revenues, Generali said it will continue its commitment to reduce its cost base.
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