Generali Reports Strong Financial Growth in 2025
Italian insurer Generali reported an operating profit of €8,004 million for 2025, marking a 9.7% increase compared to the previous year. This growth was driven by enhanced performance in both the property and casualty (P&C) and life insurance sectors. Gross written premiums rose by 3.6% to €98.1 billion, while the adjusted net profit saw a 14.5% increase, reaching €4,315 million.
As part of its "Lifetime Partner 27: Driving Excellence" strategy, Generali plans to propose a dividend of €1.64 per share, reflecting a 14.7% increase. The company also announced a proposed €500 million share buyback for 2026, pending shareholder and regulatory approval. Additionally, Generali’s Solvency II ratio improved to 219%, up from 210% at the end of 2024.
The P&C Segment Performance
The P&C segment was a strong contributor, with operating profit climbing 20% to €3,663 million. The segment’s combined ratio improved by 1.4 percentage points to 92.6%, benefiting from a relatively low incidence of natural catastrophes. Despite this progress, Generali remains slightly behind Allianz, which reported a combined ratio of 92.2% and a Solvency II ratio of 218%. AXA concluded the year with a leading Solvency II ratio of 224%.
Life Insurance Growth
In the life insurance sector, operating profit increased by 4.3% to €4,154 million, and net inflows reached €13.5 billion. This growth was propelled by increased demand for protection, health, unit-linked, and hybrid products.
Generali’s asset management strategy was under the spotlight following the collapse of a planned joint venture with Natixis Investment Managers in December. This partnership was initially expected to manage €1.9 trillion in assets, potentially making it the second-largest asset manager in Europe. However, regulatory compliance concerns in Rome, coupled with resistance from major shareholders Delfin and Francesco Gaetano Caltagirone, who own about 17% of Generali, led to the venture's dissolution.
Moving forward, Generali has shifted to smaller strategic acquisitions. Earlier in 2025, its investment division acquired a 77% stake in U.S.-based MGG Investment Group for $320 million. Consequently, the insurer's total assets under management rose by 4.3% to €900 billion.
Philippe Donnet, Chief Executive of Generali, highlighted the successes in P&C and life insurance as evidence of the company’s focus on its core strengths. He noted that the firm is "accelerating the transformation of the Group operating model through the broad deployment of AI, digitalization, and automation."
J.P. Morgan has identified Generali as a favored European insurance prospect for 2026, indicating potential improvements in capital returns and a robust growth trajectory in the life sector relative to competitors. Additionally, shareholders' equity increased by 5.5% to €32.1 billion, while the contractual service margin grew by 10.8% to €34.6 billion.