Capital/Financing Update • Dec 18, 2020
Capital/Financing Update
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| Informazione Regolamentata n. 0018-141-2020 |
Data/Ora Ricezione 18 Dicembre 2020 19:55:11 |
MTA | |
|---|---|---|---|
| Societa' | : | ASSICURAZIONI GENERALI | |
| Identificativo Informazione Regolamentata |
: | 140556 | |
| Nome utilizzatore | : | ASSGENERN06 - AMENDOLAGINE | |
| Tipologia | : | REGEM; 3.1 | |
| Data/Ora Ricezione | : | 18 Dicembre 2020 19:55:11 | |
| Data/Ora Inizio Diffusione presunta |
: | 18 Dicembre 2020 19:55:12 | |
| Oggetto | : | of "a+". Outlook stable | Generali, AM Best confirms the FSR rating of "A" (Excellent) and the Long-Term ICR |
| Testo del comunicato |
Vedi allegato.
18.12.2020 PRESS RELEASE
Generali, AM Best confirms the FSR rating of "A" (Excellent) and the Long-Term ICR of "a+". Outlook stable.
Milan - Today, AM Best have announced that it has confirmed Generali's Financial Strength Rating (FSR) of "A" (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of "a+".
At the same time, AM Best confirmed its long-term credit ratings for debt instruments issued or guaranteed by Generali (Long-Term IRs). The outlook is stable.
The ratings reflect Generali's balance sheet strength, which AM Best categorises as strong, as well as its operating performance, favourable business profile and appropriate enterprise risk management.
Generali's capital strength is underpinned by risk-adjusted capitalization at the strongest level: the Group had a Solvency II Ratio of 203% as of 30th September 2020.
According to AM Best, Generali's business profile is very favourable, due to its leadership position in its core markets. The Group has a solid franchise, reinforced by its excellent access to markets through its proprietary network and its multichannel distribution strategy.
Moreover, the Group has continued to expand its asset management business, which represents a diversified source of revenue.
The press release issued by AM Best is attached.
Generali is one of the largest global insurance and asset management providers. Established in 1831, it is present in 50 countries in the world with total premium income of more than € 69.7 billion in 2019. With nearly 72,000 employees serving 61 million customers, the Group has a leading position in Europe and a growing presence in Asia and Latin America. Generali's ambition is to be the Lifetime Partner to its customers, offering innovative and personalized solutions thanks to an unmatched distribution network.
Media Relations T +39. 02.43535014 [email protected]
Investor Relations T +39.040.671402 [email protected]
Generali @GENERALI Generaligroup GruppoGenerali
D Print This Page ECEMBER 18, 2020 12:54 PM (EST)
AM Best Affirms Credit Ratings of Assicurazioni Generali S.p.A. and Its Main Subsidiaries
Pierre Tournier, CFA, FSA, CERA Associate Director, Analytics +31 20 308 5423 [email protected] Christopher Sharkey Manager, Public Relations +1 908 439 2200, ext. 5159 [email protected]
Dr. Angela Yeo Senior Director, Analytics +31 20 308 5421 [email protected] Jim Peavy Director, Communications +1 908 439 2200, ext. 5644 [email protected]
For information about each company, including the Best's Credit Reports, group members (where applicable) and news stories, click on the company name. An additional purchase may be required.
| 085124 Assicurazioni Generali S.p.A. | |||
|---|---|---|---|
| 085071 Assicurazioni Generali S.p.A. | |||
| 090532 Assicurazioni Generali S.p.A. JPB | |||
| 085304 COSMOS Lebensversicherungs-AG | |||
| 085382 COSMOS Versicherung AG | |||
| 1 2 3 4 |
AMSTERDAM - DECEMBER 18, 2020 12:54 PM (EST) AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "a+" of Assicurazioni Generali S.p.A. (Generali) (Italy) and its main rated subsidiaries. Concurrently, AM Best has affirmed the Long-Term Issue Credit Ratings (Long-Term IRs) of debt instruments issued or guaranteed by Generali. The outlook of the Credit Ratings (ratings) is stable.
The ratings reflect Generali's balance sheet strength, which AM Best categorises as strong, as well as its strong operating performance, very favourable business profile and appropriate enterprise risk management.
Generali's balance sheet strength is underpinned by riskadjusted capitalization that is considered to be at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). The group had a regulatory solvency ratio of 203% as at 30 September 2020 (YE 2019: 224%). Offsetting factors in the assessment include the group's significant exposure to Italian sovereign bonds, amounting to EUR 62.8 billion, or 214% of shareholders' equity, as of year-end 2019. While the debt is mostly held against participating life contracts, the position introduces potential volatility to the regulatory solvency and risk-adjusted capitalisation levels.
Generali's strong operating performance is driven by solid technical performance. Technical results are underpinned by the group's non-life business, which produced average combined ratios of 92.9% over the five-year period ending in 2019, as calculated by AM Best. The group's life technical results remain impacted by legacy products with elevated interest rate guarantees, but AM Best expects the group's sustained focus on capital efficient, low guarantee products to improve this line's profitability. While the COVID-19 pandemic impacted Generali's profitability, results are expected to revert to historic norms. Losses related to the pandemic were primarily driven by non-operating results, mainly on investments. The group's net profit was EUR 1.3 billion for the first nine months of 2020, down 40% from the same period in 2019.
Generali's very favourable business profile is underpinned by its leading and defensible positions in its core markets. The group has a solid franchise, reinforced by its excellent access to markets through its strong proprietary network and its multichannel distribution strategy. The group has continued to expand its asset management business, with third party assets under management remaining flat through the pandemic at EUR 161 billion through Sept. 30, 2020. The business provides the group with a diversified source of revenue.
The FSR of A (Excellent) and the Long-Term ICRs of "a+" have been affirmed with stable outlooks for Assicurazioni Generali S.p.A. and its following subsidiaries:
Generali España, Sociedad Anonima de Seguros y Reaseguros
Generali Deutschland Versicherung AG
The Long-Term ICR of "bbb+" with a stable outlook has been affirmed for Generali France S.A.
The following Long-Term IRs have been affirmed with a stable outlook:
Assicurazioni Generali S.p.A.—
— "a" on EUR 1,750 million 5.125% senior unsecured notes, due 2024
— "a-" on EUR 1,250 million 5.5% fixed/floating rate senior dated subordinated notes, due 2047 (callable in 2027)
— "a-" on EUR 850 million 5% fixed/floating rate senior dated subordinated notes, due 2048 (callable in 2028)
— "a-" on EUR 1,000 million 4.125% fixed rate senior dated subordinated notes, due 2026
— "a-" on EUR 1,250 million 7.75% fixed/floating rate senior subordinated notes, due 2042 (callable in 2022) (of which EUR 467 million remains outstanding)
— "a-" on EUR 750 million 10.125% fixed/floating rate senior subordinated notes, due 2042 (callable in 2022) (of which EUR 302 million remains outstanding)
— "a-" on EUR 500 million, 3.875% fixed rate senior dated subordinated notes, due 2029
— "a-" on EUR 750 million, 2.124% fixed rate senior dated subordinated notes, due 2030
— "bbb+" on GBP 495 million 6.416% fixed/floating rate junior subordinated perpetual debentures, callable in 2022 (of which GBP 167 million remains outstanding)
— "bbb+" on GBP 350 million 6.269% fixed/floating rate junior subordinated perpetual debentures, callable in 2026
— "bbb+" on EUR 1,500 million 4.596% fixed/floating rate more deeply subordinated perpetual notes (originally issued by Generali Finance B.V.)
The following indicative Long-Term IRs on securities available under the EUR 15 billion medium-term note programme have been affirmed as indicated, with a stable outlook:
— "a" on all senior unsecured notes to be issued under the programme
— "a-" on all senior subordinated notes to be issued under the programme
— "bbb+" on all junior subordinated notes to be issued under the programme
This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.
Copyright © 2020 A.M. Best Company, Inc. and/or its affiliates ALL RIGHTS RESERVED No part of this report may be distributed in any electronic form or by any means, or stored in a database or retrieval system, without the prior written permission of AM Best. Refer to our terms of use for additional details.
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