Italian insurer Generali’s profit soars

Italian insurer Generali said its first half net profit soared 73.2 per cent to €872.9 million thanks to strong life insurance sales.

Profits in its life insurance business grew 23.5 per cent to €1.6 billion, which Generali in a statement called “the best half-year figure for the past three years.”

Cost containment and improving margins in financial operations also contributed to the result, Generali added.

The profit however was lower than expected by analysts polled by Dow Jones Newswires, who had forecast €944 million. Generali’s damage insurance business shrank 6.6 per cent to €663 million, mostly because of claims following the earthquake in Chile and the Xynthia storm that hit Europe earlier this year.

The company confirmed it expected net profits to grow for the full-year.