Generali: Oddo confirms rating after results

(CercleFinance.com) - Generali has announced premiums of 19.
2 billion euros in the first quarter of 2020, up 0.3% like-for-like (+1.5% as rerported). Operating profit reached 1,448 million euros, up 7.6%, above expectations (consensus of 1,297 million euros, vs. Oddo's estimate of 1,312 million euros).

However, Oddo believes that the insurer's net income was (well) below expectations at 113 million euros (-85%) against a consensus of 379 million euros and its forecast of 153 million euros.

Analysts say that Generali believes that its operating profit should resist well this year, even though it will probably fall. The broker is reducing its earnings estimate by 6% this year to 1.8 billion euros, to integrate a more cautious assumption for impairments, although it maintains its forecasts for 2021/22.

Oddo confirms its buy rating on the share with a target price of 16 euros.


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