Berenberg Notes Generali's 'Super-Resilient' Model, Progress on FY26 Targets

MT Newswires · 3d ago
03:45 AM EDT, 10/06/2026 (MT Newswires) -- Berenberg highlighted Assicurazioni Generali's (G.MI) "super-resilient" business model, noting that the Italian insurer is on track to meet its full-year 2026 targets amid sectoral headwinds. "First, Generali is on course for its FY 2026 c94% undiscounted non-life combined ratio target, despite the fact that by mid-September natural catastrophes (nat-cats) were just over EUR1.35bn, near the trigger level of the group's aggregate reinsurance cover. Second, the improvement in motor margins will likely stop at year-end, after which non-life profit growth will likely come from better mix (more higher-margin non-motor) and volume. Third, while the very strong 21% life new business value growth in H1 2026 benefited from seasonality (Asia more than doubled due to China), the current level of interest rates is positive for life sales and margins. The main risk would be an acceleration of interest rate rises, which would make competing savings products relatively more attractive," analysts said Monday after a sell-side group meeting with Group Chief Financial Officer Cristiano Borean. As for Generali's upcoming investor day on Nov. 18, the research firm expects the insurer to focus on updates regarding its 2025 to 2027 strategic plan execution instead of establishing new targets. Analysts anticipate the focus will be on health sector growth, unit-linked and asset management synergies, and artificial intelligence integration across underwriting and claims. Berenberg left its buy rating and price target of 73 euros on the stock unchanged.