Generali's First-Half Net Profit More than Halved

   By Pietro Lombardi 
 

Assicurazioni Generali SpA's first-half net profit more than halved as coronavirus related impairments and expenses, as well as costs to settle an arbitration hit the results.

Net profit for the period fell almost 57% to 774 million euros ($912.7 million ), the Italian insurance giant said Thursday.

Impairments of EUR226 million due to market disruptions caused by the pandemic, the costs of the agreement to end the arbitration for the sale of Swiss private bank BSI and an emergency fund it set up for the pandemic weighed on the performance.

On adjusted basis, which excludes one-offs, profits fell 27%.

Operating profits declined 0.4% to EUR2.71 billion. Growth in the asset-management business and property and casualty operations was offset by a drop in operating results at the company's life segment.

Gross written premiums grew 1.2%

The insurer vowed to cut costs to mitigate the impact of the pandemic. It expects lower net and operating profits this year compared with last year.

Generali said it remains focused on its strategy.

"We continued to execute our Generali 2021 strategy in a disciplined and effective manner while also pursuing sustainable growth," Chief Executive Philippe Donnet said.

Write to Pietro Lombardi at [e-mail]; @pietrolombard10

(END) Dow Jones Newswires

July 30, 2020 02:12 ET (06:12 GMT)

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