Italy’s top insurer Generali beat estimates with its first-quarter results and sees no risk to its targets through 2027 even if conditions in the wider market worsen, its chief financial officer said on Thursday.
The conflict in Iran is rattling global markets, driving volatility in equities, fuelling a spike in oil prices and complicating the outlook for interest rates and growth as investors price in higher geopolitical risk and the potential for supply disruptions.
“Thanks to the diversification of our profit sources and the halving of Solvency Ratio sensitivity, we believe the targets will not be jeopardised even under sharply worsening scenarios,” Cristiano Borean told a post-results press briefing.
Generali sees average annual growth in earnings per share of between 8% and 10% through 2027. The insurer will hold an ‘investor day’ in London on November 18 for an update of its 2027 strategy, but it will not review its targets, Borean added.
Its first-quarter operating result – the metric most closely watched by the market – grew 8.1% to 2.23 billion euros ($2.59 billion), helped by contributions from all business segments, and above a company-provided consensus of 2.04 billion euros.
Generali said in a statement that its first-quarter net profit fell 2.2% to 1.17 billion euros, slightly above analysts’ forecasts, hit by the impact of financial market fluctuations on investments held at fair value and a one-off tax component of 50 million euros in France.
Shares in Generali rose 2.6% in early trade.
“This is a very strong set of results, in our view, and we expect the shares to outperform with potential for consensus upgrades,” JPMorgan analysts said in a note.
The company’s solvency ratio, a measure of its financial strength, fell to 212% at the end of March from 219% at the end of 2025, reflecting the effect of market variances, but had risen to 214% as of May 15, Borean said.
In its non-life segment, Generali reported an unusually high impact from natural catastrophe claims, due particularly to the impact of Storm Kirstin in Portugal in January.
However, its combined ratio and undiscounted combined ratio – measures of underwriting performance – were better than analysts had forecast, despite worsening year-on-year.
($1 = 0.8605 euros)
(Reporting by Gianluca Semeraro)
