Natural disasters affect the results of the first half of the year Generali

(Reuters) — Generali said on Friday that first-half operating profit was boosted by its life and wealth management businesses, while its non-life segment suffered from the impact of natural disasters.

The Italian insurer’s first-half operating income rose 1.6 percent year-on-year to 3.72 billion euros ($4.04 billion), broadly in line with the company’s consensus.

However, the operating profit of the nonlife segment fell by 6.7%. Analysts at Jefferies said this was “the most material component of the group’s miss”.

European insurers face increasing challenges as climate change intensifies, with more frequent and more severe natural disasters such as floods and wildfires.

Generali is studying a “specific approach” to natural disasters as part of a new strategy it will unveil in Venice on January 30, CEO Marco Sesana said.

In a statement, CEO Philippe Donnet said the insurer is “fully on track” to meet all the “ambitious” targets of its current strategic plan, including annual earnings per share growth between 6% and 8% in 2022-2024 and cumulative dividends. of up to EUR 5.6 billion (USD 6.12 billion).