Assicurazioni Generali Raises Dividend After 2017 Net Profit Rise -- Update
March 15 2018 - 4:15AM
Dow Jones News
Adds share price, CEO comment,
By Pietro Lombardi
Assicurazioni Generali SpA (G.MI) shares rose after it said
Thursday that it will raise its dividend for 2017 as net profit
increased slightly and operating profit reached a record high
during the year.
The Italian insurer reported net profit of 2.11 billion euros
($2.61 billion), up from EUR2.08 billion in 2016, a result it
attributed to operating and non-operating results that improved on
the back of lower impairment losses.
Operating profit rose 2.3% to about EUR4.89 billion, a record
high, the company said, supported by its life, investment, asset
and wealth management businesses as well as cost cuts.
The Trieste-based insurer, which confirmed its 2018 targets,
said it will propose a dividend of EUR0.85 a share, up from the
EUR0.80 it paid in 2016.
The results supported Generali's shares, which at 0844 GMT
traded 1.6% higher.
"We are perfectly positioned to reach all of our objectives that
we had set for 2018," Chief Executive Philippe Donnet said. "Our
focus on technical excellence, combined with the results of our
investments, asset and wealth management business and the
cost-reduction target hit two years ahead of schedule, have pushed
the operating result to record levels."
The company is in the last year of its strategic plan and, in a
call following the results, Mr. Donnet said he is confident the
plan's target will be achieved. The strategy includes a plan to
rejig Generali's geographical presence by leaving less profitable
markets to focus on core ones. The CEO said the company is on track
to beat its target to generate about EUR1 billion in cash by 2018
through this process.
Mr. Donnet said that the new strategy will be unveiled at the
company's November investor day.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
March 15, 2018 05:00 ET (09:00 GMT)
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