# Generali’s 9-month profit beats expectations, has 1 billion euros left for potential M&A Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-11-11 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Generali Outperforms Market Expectations with Nine-month Meta Description: Italy's top insurer Generali beats expectations with strong nine-month results, 1 billion euros left for M&A opportunities. Stay updated on Dec. 15. URL: https://financedigest.com/generalis-9-month-profit-beats-expectations-has-1-billion-euros-left-for-potential-mahtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-11-11t071413z3lynxmpehaa09hrtroptp4cattolica-assic-m-a-generali-1736837454862-compressed.jpg) MILAN (Reuters) -Italy’s top insurer Generali beat market expectations with its nine-month results on Thursday as its life and asset management segments performed well and said it has about 1 billion euros left to deploy as it continues to look at M&A opportunities. The company is set to update the market on how it plans to use its available capital on Dec. 15 when it will unveil a new three-year strategic plan, finance chief Cristiano Borean said in a post-results media call. [Chief Executive](https://www.financedigest.com/exotix-draws-sberbanks-us-chief-executive-in-triple-hire-to-extend-global-capabilities.html "Exotix Draws Sberbank’s US Chief Executive in Triple Hire to Extend Global Capabilities") Philippe Donnet, whose term expires next April, has come under fire from two main shareholders – Italian businessmen Francesco Gaetano Caltagirone and Leonardo Del Vecchio – who have criticised his M&A strategy as too timid and want Generali to grow further. Generali earmarked up to 4 [billion euros](https://www.financedigest.com/eu-seeks-clarification-on-italy-post-covid-plan-freezes-19-billion-euros.html "EU seeks clarification on Italy post-COVID plan, freezes 19 billion euros") ($4.63 billion) for M&A under a three-year strategic plan ending this year. After a number of acquisitions in Portugal, Greece, eastern Europe and Malaysia, the insurer sealed last month a 1.17 [billion euro](https://www.financedigest.com/delivery-hero-ramps-up-interest-payments-to-raise-1-billion-euro-convertible-bond.html "Delivery Hero ramps up interest payments to raise 1 billion euro convertible bond") takeover of smaller rival Cattolica in a move aimed at cementing its domestic market leadership. “We are still evaluating any M&A opportunities consistent with our discipline. But M&A is not a must,” Borean said, when asked if this capital could be also used for a [share buyback](https://www.financedigest.com/abb-to-launch-1-billion-share-buyback-on-april-3.html "ABB to launch billion share buyback on April 3"). Generali’s nine-month net [profit rose](https://www.financedigest.com/zur-rose-delays-profitability-break-even-to-2024.html "Zur Rose delays profitability break-even to 2024") 74% to 2.25 billion euros ($2.60 billion), above the average forecast of 2.13 billion euros in an analyst consensus provided by the company. Its [shares have gained 35% this year and were up 1.6% in early trade](https://www.financedigest.com/social-trading-is-the-new-way-that-gen-z-are-getting-their-share-of-the-pie.html "Social Trading is The New Way That Gen Z Are Getting Their Share of The Pie") on Thursday. While its life and [asset management businesses](https://www.financedigest.com/making-your-accountant-an-invaluable-asset-to-your-business.html "MAKING YOUR ACCOUNTANT AN INVALUABLE ASSET TO YOUR BUSINESS") performed well, non-life business proved resilient despite the higher impact of natural catastrophe claims, the company said in a statement. Its operating profit, a figure most closely watched by the market, also came above analyst consensus as it rose 10% to 4.4 [billion euros](https://www.financedigest.com/europes-spend-on-energy-crisis-nears-800-billion-euros.html "Europe’s spend on energy crisis nears 800 billion euros"). Generali’s solvency ratio, which measures the [financial strength of the company](https://www.financedigest.com/companies-that-dont-upgrade-their-financial-processes-this-year-will-get-left-behind.html "Companies that don’t upgrade their financial processes this year will get left behind"), stood at 233% as of Nov. 8, up slightly from 231% at the end of July and 224% at the end of 2020. The insurer confirmed its target of annual compound [growth in 2018-2021 of earnings](https://www.financedigest.com/universal-music-q3-earnings-beat-expectations-streaming-growth-slows.html "Universal Music Q3 earnings beat expectations, streaming growth slows") per share of between 6% and 8%. Return on Equity (ROE) is [expected to be higher](https://www.financedigest.com/italian-hearing-aid-maker-amplifon-expects-higher-2023-earnings.html "Italian hearing aid maker Amplifon expects higher 2023 earnings") than 11.5%. ($1 = 0.8648 euros) (Reporting by Gianluca Semeraro; Editing by Susan Fenton) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---