Europe's third-largest insurer posts record high operating profit for 2017

  • "We are very happy with these results because they are the result of two years of very disciplined execution of our plan," Philippe Donnet, chief executive officer at Generali, told CNBC on Thursday.
  • The Trieste-based insurer championed a new asset management strategy, the rationalizing of its international footprint and the transformation of its German business for its latest figures.

Europe's third-largest insurer, Generali, reported earnings largely in line with market expectations on Thursday, supported by cost reductions and an uptick in performance from its asset and wealth management business.

Here are some of the highlights from the earnings:

  • Full-year net profit of 2.11 billion euros ($2.6 billion), versus 1.96 billion euros expected in a consensus provided by the company.
  • Operating profit rose 2.3 percent to hit 4.89 billion euros in 2017, versus 4.86 billion euros outlined in an analyst consensus.

"We are very happy with these results because they are the result of two years of very disciplined execution of our plan," Philippe Donnet, chief executive officer at Generali, told CNBC on Thursday.

"Our strategy is the right one for the company in this moment. They are definitely very positive and very solid results," he added.

The Italian company, which confirmed it was on track to hit objectives set for 2018, also said it would pay a dividend of 0.85 euros a share the previous year.

Generali to 'accelerate' company transformation

Generali's operating profit rose 2.3 percent to 4.89 billion euros in 2017, in line with expectations of 4.86 billion euros from an analyst consensus provided by the company.

Its economic solvency ratio — a measure of financial strength - stood at 230 percent, up from 207 percent in the latter half of 2017.

The Trieste-based insurer championed a new asset management strategy, the rationalizing of its international footprint and the transformation of its German business for its latest figures.

When asked whether political uncertainty in the euro zone's third-largest economy could pose the biggest challenge to the firm this year, Donnet replied: "No, I don't think so. The challenge is our ability to continue and accelerate the transformation of our company."