Generali exceeds expectations in Q1 despite Russia


Generali exceeds expectations in Q1 despite Russia | Photo credit: Shutterstock

MILAN, May 19 (Reuters) – Italy’s top insurer Generali on Thursday said its first-quarter net profit fell less than expected despite a 136 million euro impairment charge related to its investments in Russia.

Net profit stood at 727 million euros, down 9.3% over one year, while analysts had forecast 651 million euros according to a consensus provided by the group.

Operating profit, closely watched by the market, increased by 1.1% in the first three months of the year to 1.63 billion euros, thus exceeding the figure of 1.55 billion euros expected by analysts.

Impairment charges recorded in the quarterly accounts include 96 million euros related to Russian fixed-rate products and 40 million related to a stake in Russian insurer Ingosstrakh, Generali said.

Financial director Cristiano Borean added that the group estimated the potential additional write-downs linked to the Russian market at 163 million euros.

The Generali share gained 0.7% in the first exchanges on the Milan Stock Exchange.

(Report Gianluca Semeraro; French version Valentine Baldassari, edited by Kate Entringer and Marc Angrand)

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