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Assicurazioni Generali SpA (ARZGY)
:ARZGY
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Assicurazioni Generali
(OTC:ARZGY)
Rating:72Outperform
Price Target:
$20.00
▲(9.95%Upside)
Assicurazioni Generali (ARZGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$55.64B
Dividend Yield4.45%
Average Volume (3M)2.21K
Price to Earnings (P/E)13.9
Beta (1Y)0.37
Revenue Growth12.44%
EPS Growth-0.23%
CountryUS
Employees86,851
SectorFinancial
Sector Strength77
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)0.45
Shares Outstanding3,099,569,800
10 Day Avg. Volume1,266
30 Day Avg. Volume2,205
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)1.61
Price to Sales (P/S)0.00
P/FCF Ratio3.12
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Assicurazioni Generali Business Overview & Revenue Model
Company DescriptionAssicurazioni Generali S.p.A. (ARZGY) is a global insurance company headquartered in Trieste, Italy. Established in 1831, it is one of the largest insurance providers in the world, operating across various sectors including life and non-life insurance. The company offers a diverse range of insurance products and financial services, which include life insurance, property and casualty insurance, and asset management services. With a presence in multiple countries, Generali serves both individual and corporate clients, leveraging its extensive network of subsidiaries and partnerships.
How the Company Makes MoneyAssicurazioni Generali generates revenue primarily through the sale of insurance policies and related financial products. The company's key revenue streams include life insurance premiums, which provide coverage for events such as death, disability, and retirement, and non-life insurance premiums, which cover risks related to property, liability, and personal accidents. In addition to premium income, Generali earns money through investment activities, where it manages the assets collected from policyholders and seeks returns through various investment vehicles. The company also benefits from fees and commissions related to its asset management services. Strategic partnerships and joint ventures in different markets enhance its distribution capabilities and market reach, contributing to its overall earnings.
Assicurazioni Generali Earnings Call Summary
Earnings Call Date:May 22, 2025
(Q1-2025)
| % Change Since: -3.65%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The call reflected a strong performance in the P&C segment and robust capital generation, indicating a positive start to the fiscal year. However, challenges such as regulatory impacts in Italy and issues in Argentina were noted.Q1-2025 Updates
Positive Updates
Strong P&C Momentum
The P&C top line is growing strongly at 8.6%, with a reported combined ratio below 90%. The average annual premium is growing at around 6%, and in motor at around 8%.
Life Net Flows and New Business Margin
Achieved EUR 3 billion in Life net flows for the first quarter, with a new business margin increase of 26 basis points compared to last year.
Resilient Capital Position
Maintained a Solvency II ratio of 210%, with a strong capital generation close to 6 percentage points excluding the long-term incentive plan effect.
Adjusted Earnings Growth
Adjusted earnings per share grew at 9.4% year-on-year.
Negative Updates
Impact of Regulatory Change in Italy
Negative operating variances of EUR 77 million due to a regulation change on the stamp duty on unit-linked reserves in Italy.
Surrenders in Italy
Surrenders in Italy were down 20% year-on-year, but have not yet returned to normal levels.
Argentina Impact on P&C Investment Income
The first quarter bears the brunt of the Argentina effect, impacting the P&C investment income.
Company Guidance
During the Generali Group's First Quarter 2025 Results Presentation, the company provided comprehensive guidance on its performance metrics and strategic initiatives. The P&C segment demonstrated robust growth with a top line increase of 8.6%, driven mainly by pricing improvements and a growing volume in non-motor sectors. The average annual premium rose by approximately 6%, with motor premiums specifically climbing around 8%. The reported combined ratio fell below 90%, with an undiscounted target set at 94.5% by 2027. In the Life segment, Generali achieved a strong start with EUR 3 billion in net inflows, focusing on Protection & Health and Hybrid & Unit-Linked products. The new business margin improved by 26 basis points, with an aim for a margin between 5.25% and 5.75% in upcoming quarters. Generali's capital generation was solid, maintaining a Solvency II ratio of 210% despite market volatility, and the company expects to generate over EUR 11 billion in cumulative net holding cash flow by the end of the strategic plan period.Assicurazioni Generali Financial Statement Overview
Summary
Generali's financial performance is stable, with strong profitability and efficient operations. The company exhibits solid revenue and profit margins despite some revenue decline. The balance sheet is well-managed, indicating financial stability, and cash flows are positive, though free cash flow variability warrants attention.Income Statement
Assicurazioni Generali demonstrates a solid revenue base with moderate growth. The gross profit margin is strong, indicating efficient cost management. However, there is a noticeable decline in revenue over the past years, impacting net profit margins. EBIT and EBITDA margins are robust, reflecting good operational efficiency.72
Positive
Balance Sheet
The company maintains a healthy equity position, with a strong equity ratio. The debt-to-equity ratio shows moderate leverage, which is typical for the insurance industry. Return on equity is stable, suggesting consistent profitability. Overall, the balance sheet reflects financial stability.78
Positive
Cash Flow
Operating cash flow remains positive, indicating good cash generation from core operations. However, fluctuations in free cash flow growth and a moderate free cash flow to net income ratio suggest potential variability in cash flow management. The cash flow statement reflects strong operational cash generation but highlights the need for careful capital expenditure management.67
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 59.68B | 57.20B | 72.64B | 92.79B | 77.72B |
| Gross Profit | 53.74B | 48.48B | 72.64B | 92.79B | 77.72B |
| EBITDA | 7.19B | 112.82B | 0.00 | 4.93B | 3.92B |
| Net Income | 3.72B | 3.75B | 2.91B | 2.85B | 1.74B |
Balance Sheet | |||||
| Total Assets | 538.65B | 508.61B | 519.05B | 586.23B | 544.71B |
| Cash, Cash Equivalents and Short-Term Investments | 246.29B | 7.07B | 287.67B | 357.05B | 344.90B |
| Total Debt | 17.58B | 33.17B | 16.48B | 16.57B | 13.42B |
| Total Liabilities | 505.55B | 477.33B | 500.91B | 554.35B | 512.92B |
| Stockholders Equity | 30.39B | 28.97B | 16.20B | 29.31B | 30.03B |
Cash Flow | |||||
| Free Cash Flow | 15.01B | 1.55B | 9.90B | 29.39B | 19.01B |
| Operating Cash Flow | 15.38B | 1.73B | 10.54B | 17.48B | 19.34B |
| Investing Cash Flow | -13.82B | 2.28B | -9.54B | -16.30B | -15.98B |
| Financing Cash Flow | -342.00M | -3.80B | -2.22B | -677.00M | -2.27B |
Assicurazioni Generali Technical Analysis
Positive
18.19
Price Trends
18.19
Positive
17.59
Positive
15.95
Positive
Market Momentum
0.09
Negative
60.11
Neutral
72.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARZGY, the sentiment is Positive. The current price of 18.19 is above the 20-day moving average (MA) of 17.86, below the 50-day MA of 18.19, and above the 200-day MA of 15.95, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 60.11 is Neutral, neither overbought nor oversold. The STOCH value of 72.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARZGY.
Assicurazioni Generali Peers Comparison
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $34.25B | 12.19 | 18.49% | 1.73% | 7.55% | 14.16% | |
76 Outperform | $17.89B | 17.36 | 9.70% | 3.75% | 5.84% | -10.64% | |
73 Outperform | $33.38B | 9.09 | 18.42% | ― | 25.29% | -23.19% | |
72 Outperform | $55.64B | 13.90 | 12.80% | 4.45% | 12.44% | -0.23% | |
70 Neutral | $11.11B | 15.58 | 9.36% | 5.28% | -5.03% | ― | |
67 Neutral | $16.88B | 11.72 | 9.79% | 3.73% | 11.85% | -7.72% | |
57 Neutral | $46.68B | 18.10 | 6.13% | 2.22% | -44.30% | -33.09% |
* Financial Sector Average
Performance Comparison
ARZGY
Assicurazioni Generali
18.48
6.13
49.64%
AEG
Aegon
7.07
1.17
19.83%
AIG
American International Group
81.21
8.34
11.45%
ACGL
Arch Capital Group
88.35
-3.03
-3.32%
HIG
Hartford Financial
122.86
23.42
23.55%
PFG
Principal Financial
81.06
-0.64
-0.78%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.