G Generali Ass

Adds share price, CEO comment,

 
   By Pietro Lombardi 
 

Assicurazioni Generali SpA (G.MI) shares rose after it said Thursday that it will raise its dividend for 2017 as net profit increased slightly and operating profit reached a record high during the year.

The Italian insurer reported net profit of 2.11 billion euros ($2.61 billion), up from EUR2.08 billion in 2016, a result it attributed to operating and non-operating results that improved on the back of lower impairment losses.

Operating profit rose 2.3% to about EUR4.89 billion, a record high, the company said, supported by its life, investment, asset and wealth management businesses as well as cost cuts.

The Trieste-based insurer, which confirmed its 2018 targets, said it will propose a dividend of EUR0.85 a share, up from the EUR0.80 it paid in 2016.

The results supported Generali's shares, which at 0844 GMT traded 1.6% higher.

"We are perfectly positioned to reach all of our objectives that we had set for 2018," Chief Executive Philippe Donnet said. "Our focus on technical excellence, combined with the results of our investments, asset and wealth management business and the cost-reduction target hit two years ahead of schedule, have pushed the operating result to record levels."

The company is in the last year of its strategic plan and, in a call following the results, Mr. Donnet said he is confident the plan's target will be achieved. The strategy includes a plan to rejig Generali's geographical presence by leaving less profitable markets to focus on core ones. The CEO said the company is on track to beat its target to generate about EUR1 billion in cash by 2018 through this process.

Mr. Donnet said that the new strategy will be unveiled at the company's November investor day.

Write to Pietro Lombardi at pietro.lombardi@dowjones.com

(END) Dow Jones Newswires

March 15, 2018 05:00 ET (09:00 GMT)

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