Generali’s profit falls as floods in Europe hurt non-life results

Assicurazioni Generali SpA’s second-quarter profit fell 24 percent from a year earlier as claims from storms and floods in Europe hurt results.

Net income in the three months to June fell to 797 million euros ($870 million), missing Bloomberg’s average estimate of 881 million euros. A decline in non-life operating income more than offset higher operating profit in the life and asset and wealth management segments, the Trieste-based company said in a statement on Friday.

The net income result was also affected by the prior-year comparison, when capital gains supported the profit.

Chief Executive Officer Philippe Donnet is focusing on high-margin insurance segments as it seeks to meet its commitment to achieve annual earnings per share growth of between 6% and 8% over 2021-2024. The executive is working on a new strategy to be announced on January 30, which will include higher dividends.

Generali said its overall operating income fell 14 percent from a year earlier, hurt by natural disasters and a smaller benefit from cutbacks. This quarter, storms and floods in Germany, Italy, Austria and the Czech Republic, as well as riots in the French overseas territory of New Caledonia, boosted claims at European insurers, according to analysts.

Operating income at Generali’s life insurance business as well as its asset and wealth management segment grew, the latter boosted by last year’s acquisition of Cathay Life Conning Holdings Ltd.

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Profit Loss Flood Europe