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Investing.com -- Generali shares are up over 2% on Wednesday after the Italian insurer reported first-half 2025 earnings ahead of expectations, driven by strong performance in its property and casualty (P&C) segment.
Group operating profit reached €4.05 billion, above the consensus estimate of €3.99 billion, according to Morgan Stanley (NYSE:MS).
The P&C unit was the main driver, delivering an operating profit of €2.05 billion versus €1.98 billion expected.
“The beat was driven by a better-than-expected combined ratio – 91.0% vs cons 91.4%,” Morgan Stanley said.
The firm added that the underlying attritional loss ratio was around 80 basis points better than anticipated, helped by lower man-made losses, reduced claims frequency and improved pricing.
Life segment earnings were broadly in line with forecasts, though Morgan Stanley noted that “Life CSM of €31.5bn came in ahead of expectations of €31.0bn – driven by more favourable economic variances.”
Generali’s solvency ratio came in at 212%, slightly below consensus expectations of 214%. Morgan Stanley attributed the miss to “non-economic variances related to anticipated investment re-risking,” and noted management expects a further 2–3 percentage point drag in the second half.
The company also confirmed the launch of its previously announced €500 million share buyback.
Generali (BIT:GASI) CEO Philippe Donnet said the results showed “a very strong start” to the group’s strategic plan, with “positive performance across our Insurance business and global Asset Management platform.”