Italian Insurer Generali Posts Growth, Launches Buyback

By Elena Vardon

Assicurazioni Generali reported growth across its key metrics for the first half and launched a 500 million-euro ($578.9 million) share buyback.

The Italian insurer on Wednesday reported a net profit for the six months ended June 30 of 2.15 billion euros, up 5% from the same period last year.

Gross written premiums edged up 0.9% to 50.53 billion euros, mainly driven by growth in its property-and-casualty division. Operating profit--a metric closely watched by analysts and investors--rose 8.7% to 4.05 billion euros, and was also helped by the performance of its asset-management arm, it said.

The insurer was expected to post a net profit of 2.16 billion euros, gross written premiums of 51.29 billion euros and operating profit of 3.99 billion euros, according to estimates taken from a company-compiled consensus.

"In Insurance, P&C grew substantially in all our main geographies driven by our focus on maximizing profitable growth and Life net inflows continued their growth trajectory driven by our preferred business lines," Chief Executive Philippe Donnet said. Generali's operations in Italy, France, Germany and Central and Eastern Europe bring in the bulk of its profits.

The increase in its solvency ratio--a measure of capital strength--to 212% at the end of the period from 210% a year prior reflects healthy normalized capital generation, it said. The buyback program will start on Thursday and run until the end of the year, it said.

Write to Elena Vardon at elena.vardon@wsj.com