Assicurazioni Generali (ARZGY) AI Stock Analysis

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Assicurazioni Generali

(OTC:ARZGY)

Rating:71Outperform

Price Target:―

Assicurazioni Generali scores a solid 71, driven by strong operational performance and reasonable valuation. The key strengths include efficient operations and robust growth in the Life and P&C segments. However, declining revenue and cash flow, along with external challenges like natural catastrophe impacts, are notable risks. The stock's technical indicators show upward momentum, albeit with caution due to overbought signals.

Assicurazioni Generali (ARZGY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$54.66B

Dividend Yield4.55%

Average Volume (3M)10.52K

Price to Earnings (P/E)13.6

Beta (1Y)0.41

Revenue Growth0.80%

EPS Growth-3.25%

CountryUS

Employees86,851

SectorFinancial

Sector Strength74

IndustryInsurance - Diversified

Share Statistics

EPS (TTM)0.45

Shares Outstanding3,099,569,800

10 Day Avg. Volume0

30 Day Avg. Volume10,518

Financial Highlights & Ratios

PEG Ratio-0.18

Price to Book (P/B)1.61

Price to Sales (P/S)0.00

P/FCF Ratio2.63

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 (ARZGY) is a leading global insurance and asset management company headquartered in Trieste, Italy. Established in 1831, the company operates primarily in the life and non-life insurance sectors, offering a wide range of products and services, including life, health, and property insurance, as well as pension plans and investment solutions. Generali serves millions of customers across Europe, the Americas, and Asia, with a strong presence in its home market and a commitment to providing innovative and tailored financial solutions.

How the Company Makes MoneyAssicurazioni Generali makes money primarily through the premiums collected from its life and non-life insurance products. In the life insurance segment, the company offers policies that provide coverage for a specified term or for the life of the insured, with premiums generating revenue as they are paid by policyholders. In the non-life segment, Generali provides a variety of insurance coverages such as motor, property, casualty, and health, where customers pay regular premiums for risk protection. Additionally, the company earns income through its asset management services, which involve managing investments for individual and institutional clients, earning fees based on assets under management. Generali's revenue model is further supported by strategic partnerships and a strong distribution network, including agents, brokers, and bancassurance channels, which enhance its market reach and customer base.

Assicurazioni Generali Earnings Call Summary

Earnings Call Date:May 22, 2025

(Q1-2025)

% Change Since: -7.57%|

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

Assicurazioni Generali exhibits strong operational efficiency with solid EBIT and EBITDA margins. However, the decline in revenue and cash flow figures signifies potential risks. The company's leverage is manageable, but a lower equity ratio indicates a dependency on liabilities. Overall, stability is present, but growth and cash generation pose concerns.

Income Statement

Positive

The company shows a strong EBIT and EBITDA margin, reflecting efficient operations. However, there is a notable decline in revenue from previous years, indicating potential challenges in maintaining revenue growth.

Balance Sheet

Positive

The balance sheet shows a moderate debt-to-equity ratio, indicating a balanced leverage position. The equity ratio is relatively low, suggesting a higher reliance on liabilities for asset financing. Return on equity is reasonable but not exceptional.

Cash Flow

Positive

The cash flow statement indicates a decrease in operating cash flow and free cash flow compared to previous periods. The free cash flow to net income ratio remains stable, but the overall cash flow position has weakened.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
79.77B	57.20B	72.64B	92.79B	77.72B	88.40B
	Gross Profit
93.95B	48.48B	72.64B	92.79B	77.72B	88.40B
	EBIT
19.43B	56.24B	4.46B	4.16B	3.08B	3.73B
	EBITDA
-1.58B	112.82B	0.00	4.93B	3.92B	4.50B
	Net Income Common Stockholders
4.28B	3.75B	2.91B	2.85B	1.74B	2.67B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.95B	7.07B	287.67B	357.05B	344.90B	325.07B
	Total Assets
521.73B	508.61B	519.05B	586.23B	544.71B	514.57B
	Total Debt
36.01B	33.17B	16.48B	16.57B	13.42B	14.18B
	Net Debt
29.06B	26.10B	9.24B	8.10B	5.52B	7.31B
	Total Liabilities
489.83B	477.33B	500.91B	554.35B	512.92B	484.72B
	Stockholders Equity
29.20B	28.97B	16.20B	29.31B	30.03B	28.36B
Cash Flow		Free Cash Flow
9.89B	1.55B	9.90B	29.39B	19.01B	19.76B
	Operating Cash Flow
10.20B	1.73B	10.54B	17.48B	19.34B	20.34B
	Investing Cash Flow
-5.93B	2.28B	-9.54B	-16.30B	-15.98B	-16.48B
	Financing Cash Flow
-3.28B	-3.80B	-2.22B	-677.00M	-2.27B	-3.69B

Assicurazioni Generali Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price17.45

Price Trends

50DMA

17.88

Negative

100DMA

17.10

Positive

200DMA

15.47

Positive

Market Momentum

MACD

-0.02

Positive

RSI

41.83

Neutral

STOCH

21.20

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARZGY, the sentiment is Neutral. The current price of 17.45 is below the 20-day moving average (MA) of 18.41, below the 50-day MA of 17.88, and above the 200-day MA of 15.47, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 41.83 is Neutral, neither overbought nor oversold. The STOCH value of 21.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ARZGY.

Assicurazioni Generali Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MET	78 Outperform	$52.63B	12.76	16.08%	2.90%	8.77%	110.90%
UNM	76 Outperform	$13.75B	9.30	14.68%	2.13%	1.69%	25.54%
ARZGY	71 Outperform	$54.66B	13.57	12.80%	4.55%	0.80%	-3.25%
PRU	71 Outperform	$37.15B	16.61	8.04%	5.14%	2.47%	6.88%
AIG	68 Neutral	$49.24B	19.09	6.13%	2.11%	-44.30%	-33.09%
Sector *	64 Neutral	$12.86B	9.79	7.84%	78.10%	12.05%	-7.99%
LNC	61 Neutral	$5.65B	4.71	16.91%	5.44%	8.31%	-2.30%

* Financial Sector Average

Performance Comparison

ARZGY

Assicurazioni Generali

17.45

5.40

44.81%

AIG

American International Group

84.22

11.64

16.04%

LNC

Lincoln National

32.86

3.29

11.13%

MET

Metlife

77.85

9.97

14.69%

PRU

Prudential Financial

103.39

-7.05

-6.38%

UNM

Unum Group

77.85

29.69

61.65%

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.