Generali 1Q Net Profit Drops by 9%, Hit by Lower Investment Gains
May 11 2017 - 2:51AM
Dow Jones News
By Giovanni Legorano
ROME-Italian insurer Assicurazioni Generali SpA said Thursday
its first-quarter net profit dropped by 9% from the same period a
year earlier, mainly hit by lower investment gains and higher
taxes.
The Trieste-based company said its net profit for the period
stood at 535 million euros ($582 million), compared with EUR588
million for the same three months of 2016.
Generali said the profit drop was mainly due to lower realized
gains of around EUR100 million, particularly in its bonds and real
estate portfolio, which the insurer said was consistent with its
strategy of preserving the future value of investments amid market
volatility.
It also said its tax burden increased to 30.7% for the quarter
from 28.5% for the same period a year earlier.
However, Generali said its operating result rose by 4% to
EUR1.21 billion for the quarter, mainly lifted by its life
business.
The insurer also announced it aimed to raise its assets under
management to EUR500 billion by 2020, from EUR450 billion now. It
said it would target a net income of EUR300 million a year from the
unit, which would translate into an additional EUR150 million
annual net profit for the company.
-Write to Giovanni Legorano at Giovanni.Legorano@wsj.com
(END) Dow Jones Newswires
May 11, 2017 03:36 ET (07:36 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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