Generali Earnings: Delivers Ahead of Our Estimates; Raises Dividend; Shares Fairly Valued

Generali has reported net profit of EUR 3.747 billion for 2023 or EUR 2.43 per share. This is ahead of our estimates of EUR 3.606 billion and EUR 2.28 per share. On the back of these results, the board is proposing a EUR 1.28 per-share dividend, higher than our forecast of EUR 1.23. Company-compiled consensus for the dividend was EUR 1.25. A EUR 500 million buyback for 2024 will also be proposed to shareholders. The announcement on March 12 rounds out a strong year for Generali, with solvency at 220% remaining solid. Normalized capital generation of EUR 4.6 billion, an 11.7% rise, is the highest amount of capital the company has generated. Return on equity was 12.9% for the year. We expect good results to continue in 2024. We maintain our fair value estimate and no moat rating.