Generali has launched a comprehensive three-year strategy following its record operating and adjusted net results in 2024, which enabled the Italian insurer to exceed its financial targets outlined in the growth plan for 2022 to 2024. Group Chief Executive Officer Philippe Donnet stated, 'Our ambitious new 'Lifetime Partner 27: Driving Excellence' plan aims to propel robust earnings growth, ensure solid cash generation, and enhance shareholder remuneration.' As part of this strategy, Generali is keen on accelerating profitable growth in its life division and implementing a series of additional measures.
The group aspires to achieve a compound annual growth rate (CAGR) in earnings per share (EPS) of 8% to 10% from 2025 to 2027, building upon an impressive EPS CAGR of 11.3% reported between 2022 and 2024, significantly outpacing the initial target of 6% to 8%. This new three-year plan also envisages a 10% CAGR in dividends, alongside a commitment to a minimum of 1.5 billion euros worth of share buybacks.
The company plans to initiate share repurchase activities valued at 500 million euros beginning in 2025. Generali's board is expected to propose a dividend of 1.43 euros per share for 2024, surpassing last year's dividend of 1.28 euros per share, thereby signaling a steadfast increase in shareholder returns. The driving force behind this return to shareholders is bolstered by Generali's robust cash and capital position, showcased by an all-time high adjusted net result of 3.77 billion euros over the 12 months ending December 31, 2024, compared to 3.58 billion euros the previous year.
The confluence of growth across all business segments, particularly in asset and wealth management, contributed to a consolidated operating result that also rose by 8.2% year over year, achieving a record 7.30 billion euros. Nonetheless, the consolidated result attributable to the group slightly decreased to 3.72 billion euros, down from 3.75 billion euros in the prior period.
Analysts surveyed by FactSet had anticipated net income to remain stable at 3.75 billion euros. Revenue generated from insurance contracts rose to 54.13 billion euros, a significant increase from 49.50 billion euros, as gross written premiums surged by 14.9%, amounting to 95.2 billion euros, fueled by strong performance in the life and property and casualty divisions.
Furthermore, Generali's total assets under management soared by 31.6%, reaching 863 billion euros due to positive net inflows and the successful consolidation of Conning Holdings..