Adds CEO comments, analysts comments, detail on strategy, share price

 
 

--Assicurazioni Generali beat the targets set in its business plan

--The insurer is confident it will achieve the targets of its new strategic plan, the CEO said

--2018 net profit rose 9.4%

 
   By Pietro Lombardi 
 

Assicurazioni Generali SpA (G.MI) raised its dividend after it said it beat the targets set in its business plan and reported an increase in 2018 net profit.

The results cap the insurance giant's turnaround plan and make it confident it will achieve the targets of its new strategic plan, Chief Executive Philippe Donnet said Thursday.

Net profit for the year rose 9.4% to 2.31 billion euros ($2.61 billion). The company raised its dividend by 5.9% to EUR0.90 a share.

Generali delivered "a good set of results that was expected," Citi said. Since there are no changes to the outlook and the results are in line with expectations, shares shouldn't have a significant reaction, it added.

At 1020 GMT, shares were up 1%.

"Assicurazioni Generali has completed the 2015-18 strategic plan, exceeding all the targets and successfully concluding its industrial turnaround," the CEO said. These include dividend, return on equity and cash generation.

In November, Generali presented a new business plan through 2021, aimed at improving earnings and expanding in selected markets, in part through acquisitions.

The strategy targets an annual growth of between 6% and 8% in earnings per share, higher than those targeted by peers like Allianz SE (ALV.XE). It also targets a dividend payout range between 55% and 65% and an average return on equity of more than 11.5%.

The Italian insurer is "confident" it will meet the targets of the new three-year strategy, Mr. Donnet said in a call with journalists. Such goals can be achieved without M&A operations, he said. However, the insurer looks at opportunities to grow its insurance business in Europe, as well as its asset-management operations, he added

Generali's property and casualty operations, as well as its life segments, reported growing operating results in 2018. The asset-management operations posted a 24% increase in profits.

The solvency ratio--a key measure of financial strength for insurance companies--rose to 216% from 207% at the end of 2017.

"We highlight the solid capital position and the operating profit above consensus," Banca IMI analyst Elena Perini said.

 

Write to Pietro Lombardi at pietro.lombardi@dowjones.com

 

(END) Dow Jones Newswires

March 14, 2019 06:38 ET (10:38 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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