What happens to the accounts of Cattolica, Generali and Unipol

14 November 20203 years ago babelfish

Numbers, comparisons and scenarios that emerge from the quarterly reports of Assicurazioni Generali, Unipol and Cattolica

Covid-19 also makes its effects felt on the main insurance groups in the country which close the first 9 months of 2020 with decreasing profits and which, respecting the requests of IVASS, are waiting to distribute the dividends already approved by the boards of directors. administration and approved by the assemblies. No shadow, however, on capital solidity with the Solvency ratio growing. Meanwhile, only a few weeks ago, it made the entrance of Cattolica Assicurazioni Generali which sold 24.4% of its capital at a price of 300 million.

GENERAL

The net profit of Generali, which closes the period January-September 2020, falls to 1,297 million (-40%) due, among other things, to net write-downs on investments and contributions of 310 million on investments, the conclusion of the arbitration on the sale of Bsi (183 million), the contribution of 100 million for the pandemic emergency fund and the charge of 73 million deriving from the liability management transaction. Excluding these last two items, the normalized net profit amounted to € 1,629 million (-13%). On the other hand, the operating result rose to 4 billion (+ 2.3%) thanks to the development of the Non-Life, Asset Management and Holding segments. Gross premiums amounted to € 51,989 million (+ 0.3%): in particular in the Life sector there was + 0.4%, while the Non-Life segment remained stable at € 16,566 million, as was the Motor segment.

As regards equity, the Solvency II Ratio at the end of September was equal to 203%, net of the 2019 dividend and the pro-rata provision of the 2020 dividend. As highlighted in the note of the group, the liquidity position to which added “a solid business”.

For dividends, the Leone di Trieste is said to be in a position to distribute the second part of the 2019 dividend of 0.46 euros per share approved by the board and then approved by the shareholders' meeting by the end of the year. However, the board of directors decided not to proceed in order to continue to comply with the requests of IVASS which on November 10 "represented that the application of the recommendation made by the European Systemic Risk Committee (ESRB) in June 2020 is still in force regarding the distribution of dividends is of a general nature and does not contemplate a case-by-case assessment ". Therefore, the press release continues, the dividend will not be distributed despite Generali recognizing "the importance of the contribution of the dividend for the numerous institutional investors and small shareholders, particularly in the current context". However, the objective envisaged by the strategic plan for the distribution of cash dividends for 4.5-5 billion in the period 2019-2021 was confirmed.

CATTOLICA ASSICURAZIONI

Profits halved compared to last year for Cattolica Assicurazioni which closed the first nine months of 2020 with a net profit of 42 million, down by 50.5%, also due to the 61 million of write-downs. As a note from the group informs, the operating result recorded a "solid growth" and rose to 297 million (+ 37.5%) thanks to a combined ratio which increased by 5.1 percentage points, to 90%, due to the decrease of accidents due to poor vehicle traffic during the lockdown. Therefore, the adjusted net profit increased by 21% to 116 million. Premiums decreased (-17.3%) to € 4.1 billion: in particular, the Non-Life business fell by 2.6% and the Life segment by 24%.

On the balance sheet, it should be noted that the Solvency ratio – which during the first months of the health emergency had approached the regulatory minimum of 100% so as to make IVASS intervene – dates back to 161% as at 30 September and 205% at the end of October, affected of the effects of the 300 million capital increase subscribed by Generali in that period, as recalled during the call with analysts by the financial director Atanasio Pantarrotas. This is a "fundamental step for starting the partnership with the group that will allow us to generate further value for our stakeholders over time". The goal of reaching the end of the year with an operating result of between 350 and 375 million has been confirmed, while for the net profit it is necessary to consider "other factors, which are currently unweighted".

UNIPOL

Net profit of € 759 million, down by 18.5% compared to € 931 million in the same period of 2019 but up by 31.5% on the € 577 million of the normalized result for Unipol, which had to account for the share in Bper 421 million and 67 million of extraordinary charges for redundancy incentives. Direct deposits also fell (-13.7%) to 8.6 billion, which was mainly affected by the decline in the life sector (-27.2%) to 3.11 billion and less in the non-life sector (-3.6%) which shows a pre-tax profit of 985 million (+ 41%), unlike that of the life sector which lost 75% to 51 million.

Solvency even higher, at 297% as at 6 November for Unipol, which boasts a group consolidated of 200-203%. All this translates into "a strong and less volatile position than it was a year ago due to the different asset allocation choices we made", commented during the call with analysts Carlo Cimbri, CEO of Unipol and chairman of the subsidiary UnipolSai , which does not seem to fear the future: “We believe we have the resources, market positioning and solidity in our business to be able to achieve results that match our estimates also for 2021” he said. The objectives of both Unipol and UnipolSai highlighted in the 2019-2021 business plan are therefore confirmed despite the arrival of the second wave of Covid-19 and the "inevitable repercussions on the country's already weak economic recovery, while the financial markets, with particular reference to equity markets, showed an increase in volatility ”highlights the note of the group.

"Hoping that the pandemic will find a solution in the coming months and that a return to normal can be achieved – continued Cimbri -, I confirm that the group will distribute dividends as foreseen in the industrial plan (600 million cumulative by 2022, ed), of which it is about to close the second year with results that speak for themselves ". In short, “it is our firm intention to comply with the provisions of the Business Plan on dividends to be distributed for both Unipol and UnipolSai as soon as possible” or according to the indications of IVASS.

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/che-cosa-succede-ai-conti-di-cattolica-generali-e-unipol/ on Sat, 14 Nov 2020 06:00:15 +0000.