Generali Rises Most Since 2017 on Higher Profit, Managed Assets

(Bloomberg) --

Assicurazioni Generali SpA rose the most in more than two years after the Italian insurer’s profit jumped and assets under management increased.

Nine-month net income increased 17% from a year earlier and assets under management climbed 30%, excluding businesses for sale or that have been sold. The stock climbed as much as 4.1% in Milan trading, reaching its highest level since January 2009.

Chief Executive Officer Philippe Donnet is striving to expand in growth markets to boost profit and he said that Generali may invest at least 3 billion euros ($3.3 billion) for mid-size acquisitions in insurance and asset management.

The strategic plan released last year predicts annual earnings per share growth of 6% to 8% through improving profitability in both insurance and money management and cutting debt.

Mediobanca SpA, Generali’s biggest shareholder with 13%, underwent a major investor shift this week. UniCredit SpA sold off its entire 8.4% in the bank. Billionaire Leonardo Del Vecchio increased his holding to about 10%, becoming Mediobanca’s biggest shareholder, according to people with knowledge of the matter.

“One of the main positives from the results is the significant improvement in the solvency position,” RBC Capital analysts including Paul De’Ath said in a note. The increase was well above the consensus expectation.

--With assistance from Chiara Remondini.

To contact the reporter on this story: Ross Larsen in Rome at rlarsen2@bloomberg.net

To contact the editors responsible for this story: Dale Crofts at dcrofts@bloomberg.net, Jerrold Colten, Dan Liefgreen

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