Insurer won’t predict after 2009 target ‘overtaken by events’
The board of Italian insurer Generali has retracted the company’s 2009 targets claiming they have been “overtaken by events” due to the global financial crisis and has refused to set new targets.
The company said: “The board noted that its 2009 targets, formulated in a completely different context from that of today, have been overtaken by events. Given the uncertainty over the evolution of the crisis, it has decided to wait for greater economic and market stability before setting new targets.”
Its original targets included:
- return on embedded value to increase by 2.9 percentage points to 16%
- € 2.5bn increase in operating result to € 6.5bn
- 10% compound annual growth in new business value
- combined ratio of less than 95%
- above-market growth in premium income
- to double dividend
Chairman Antoine Bernheim said then: “This Plan sets the seal on the excellent achievements of our management and lays the foundation for a new phase of growth notwithstanding the even more challenging financial and economic landscape. The financial strength and stability that are the hallmarks of the Generali Group will be maintained as essential assets as we take our next steps in product and service innovation and extend our business in our traditional markets and across the territories of the future.”
In retracting its targets, Generali confirmed a Solvency II ratio of more than 185% for year-end 2008 and said this was thanks to its business risk profile and prudent financial operations.
The company said: “2009 should see further improvements in technical performance thanks to the positive impact from measures to improve efficiency, as well as premium growth outperforming reference markets, aided by the group’s multi-channel strategy and the geographical diversification of its business."
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