Generali Earnings: First-Half Earnings Show Our Full-Year Numbers Likely To Be in Line

Generali has reported a net income of EUR 2.243 billion for the first half of this year. We think that leaves the company on track versus our full-year estimate of EUR 3.1 billion and EUR 1.96 in earnings per share. That is versus EUR 2.14 in EPS as per consensus collected by Refinitiv and EUR 1.41 in EPS delivered year to date. With an 8.4% return on equity so far, we think Aug. 9's numbers imply at least a midteens return on equity for the full year. We apply an 11% cost of capital to the business, so it looks like Generali will generate economic profits this year. We maintain our fair value estimate of EUR 21 per share and our rating of no economic moat.