ARZGF - Assicurazioni Generali: Still At A Discount Buy Confirmed
2024-06-20 17:52:44 ET
Summary
- Despite New Business Margins challenges, Generali is expected to grow with improved margins and increased new business volumes.
- Banca Generali and P&C performance drove the Group operating profit beat.
- Earnings changes lead to a price target increase to €26 per share. A solid balance sheet and attractive EPS growth trajectory support this.
After our follow-up on AXA , we noted a missing part of our EU insurance coverage, i.e. Assicurazioni Generali S.p.A. (ARZGF). Since our initiation (early 2023 - Fig 1), the company has delivered a total return higher than the S&P 500 (38.91% vs. 32.97%). For our new readers, Generali is one of the largest integrated global insurance providers. Also, over the years, the company acquired multi-asset manager companies (Fig 2) for a combined AuM of more than €600 billion. Generali was established in 1831; it is present in more than 50 countries with nearly 61 million clients. Our buy rating was backed by a 1) discount compared to EU peers, 2) innovative and personalized solutions supported by the Generali distribution network, 3) majority stakes in Cattolica & Banca Generali, 4) an optimistic projection in shareholder remuneration, and 5) M&A Upside combined with Solid Execution ....
Assicurazioni Generali: Still At A Discount, Buy Confirmed