Generali Posts 74 % Net Profit Gain to $1.28 Billion

Italy’s Assicurazioni Generali SpA posted net profits of €1.452 billion ($1.28 billion) for the year 2000, a healthy 74.1 percent gain over 1999. A capital gain of €273 million ($245 million) from its sale of its interest in Spain’s Banco Santander Central Hispano accounted for part of the increase, but profits from operations still gained a robust 40.7 percent to reach €1.152 billion ($1.034 billion).

Generali’s net premiums written rose 17.5 percent to reach €44.4 billion ($39.87 billion). 87.4 percent of its revenues comes from EU member countries, particularly, Italy, France and Germany. Sales of life products accounted for 62.4 percent of total premiums and showed a 17 percent rise, while property/casualty revenues increased by 18.3 percent. It posted a 15.1 percent return on equity.

The operating gains reflect the inclusion of Istituto Nazionale delle Assicurazioni, which Generali acquired last year. The move gave the company control of over 25 percent of the Italian insurance market and solidified its position as Europe’s third largest insurer behind France’s AXA and Germany’s Allianz.