Generali's first-half operating profit up but natural disasters weigh
Adds analysts and executive comments, updates shares
By Gianluca Semeraro
MILAN, Aug 9 (Reuters) -Italy's top insurer Generali GASI.MI said first-half operating profit was boosted by its life and wealth management businesses, while its non-life segment suffered from theimpact ofnatural disasters.
First-half operating income, the profit measure most closely watched by the market, rose 1.6% year-on-year to 3.72 billion euros ($4.04 billion), broadly in line with a company-provided consensus.
However, the non-life segment's operating profit fell 6.7% year-on-year. Jefferies analysts said that was "the most material component of the group's miss".
European insurers are facing escalating challenges as climate change intensifies, with more frequent and severe natural disasters such as floods and wildfires.
Generali shares were down 1.65% as of 1000GMT, underperforming European peers.
Natural catastrophes lifted Generali's non-life combined ratio, a measure of underwriting performance in which a level below 100 indicates a profit, to 92.4% in the first half.
In the period, the impact of undiscounted losses from natural catastrophes on that ratio rose to 1.8% from 1.3% a year earlier, more than half the 2.7% hit the insurer estimates for 2024, Chief Financial Officer Cristiano Borean told analysts.
That is before the third quarter which "traditionally suffers the biggest impact", Borean added.
Generali is studying a "specific approach" to natural catastrophes as part of a new strategy it will unveil in Venice on Jan. 30, General Manager Marco Sesana said.
In a statement, Chief Executive Philippe Donnet said the insurer was "fully on track" to meet all the "ambitious" targets of its current strategic plan, including annual earnings per share growth of between 6% and 8% in 2022-2024 and cumulative dividends of up to 5.6 billion euros ($6.12 billion).
The insurer's Life and Wealth Management segments were key contributors to first-half results, with annual operating profit growth of 7.8% and 19.4%, respectively.
($1 = 0.9156 euros)
Reporting by Gianluca Semeraro; editing by Alessandro Parodi and Valentina Za
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