In a quite challenging market context, Generali priorities are to consolidate the leadership in Europe and strengthen the position in high-potential markets, with an ambition to profitable growth, combined with financial optimisation as well as innovation and digital transformation.
SOME DATA ON THE OUTLOOK FOR 2018
- Rates: in the expectation of a slowing growth trend on the whole, in the Eurozone, where GDP is expected to decline from 1.9% to 1.0% in 2019, the first rate hike might not be implemented before mid-2020, while in USA the Fed has expressed an intention to normalize in the future the monetary policy towards a less aggressive stance.
- Financial markets: long-term rates are expected to rise in the bond segment. Considerable volatility is expected in the stock markets due to a combination of economic, market and political effects.
- Insurance markets: within the broader ambition to offer innovative and personalized solutions also leveraging on the unmatched distribution power, on the Life side the performance is expected to be impacted by a lower growth rate in unit-linked, while traditional products could gain renewed interest. Growth in P&C is expected to continue in major Eurozone countries despite the slight economic slowdown forecast.
In this context, the Group will continue with its portfolio rebalancing strategy to further strengthen profit margins in the Life segment with a more efficient capital allocation approach. In the P&C segment, premium inflows are expected to improve in the Generali Group’s main geographical areas, with a considerable focus on high growth potential markets. In the Asset Management segment, actions will continue to identify investment opportunities and sources of income for all of its clients, at the same time managing risks through the expansion of the multi-boutique platform. The Group’s investment policy will continue to be based on an asset allocation intended to consolidate current profit margins and guarantee consistency with liabilities towards policyholders.