Financial Data and Key Metrics Changes - The group achieved an operating result of €6.5 billion, an increase of 11.2% compared to 2021, with gross written premiums amounting to €81.5 billion and a net result of €2.9 billion [7][10] - The solvency ratio stood at a strong 221% at the end of 2022, with reduced sensitivity to financial markets [10] - The net holding cash flow grew by 11% to €2.9 billion, reflecting improved cash generation [11] Business Line Data and Key Metrics Changes - The Property & Casualty (P&C) segment saw a top line increase of 11%, driven primarily by motor insurance, with non-motor growth being a strategic focus [21][22] - Life business operating results reached €3.5 billion, with €200 million to €250 million attributed to nonrecurring elements [24][25] Market Data and Key Metrics Changes - The company reported a 3.3% growth in retail and SME segments and a 6% increase in corporate and commercial segments [23] - The average annual premium increase was noted, with a significant portion of the growth attributed to price adjustments rather than volume increases [46][87] Company Strategy and Development Direction - The company is focused on its "Lifetime Partner 24, Driving Growth Strategy," emphasizing profitable and sustainable growth [6][18] - There is a commitment to customer loyalty and service improvement, with Generali being the largest insurer in the European retail and SME segment [13][14] - The company is actively managing inflation through tariff increases and cost-saving measures [15][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by geopolitical tensions and inflation but expressed confidence in the company's resilience and strategic execution [5][6] - The outlook for the motor insurance combined ratio is cautiously optimistic, with expectations for improvement in 2023 [70][94] Other Important Information - The company has received an upgraded ESG rating to AAA from MSCI, reflecting its commitment to sustainability [17] - The company is not considering increasing its debt, maintaining a focus on capital-light products and protection offerings [43][44] Q&A Session Summary Question: P&C top line growth and volume drivers - The P&C top line increased by 11%, with non-motor growth being a key focus, driven by changes in average annual premiums [21][22] Question: Life earnings and recurring contributions - Life operating results included €200 million to €250 million of nonrecurring elements, with stable performance expected under IFRS 17 [24][25] Question: Holding cash position - The holding cash position at year-end was €2.8 billion, with a significant portion allocated for operational flexibility [26][27] Question: New business margins and private equity dividends - New business margins benefited from higher interest rates, but the new business value saw a decline due to market conditions [30][34] Question: Lapse risk and competition for deposit accounts - Lapse rates remained aligned with previous years, with an increase observed in the fourth quarter, particularly in bancassurance distributions [85] Question: Combined ratio outlook and claims inflation - The combined ratio for motor was reported at 98.2%, with expectations for improvement in 2023 as pricing adjustments take effect [82][94]
Assicurazioni Generali S.p.A.(ARZGY) - 2022 Q4 - Earnings Call Transcript