Cattolica, write-downs halve profits. The operating result runs

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Strong operating results and beyond analysts’ expectations for Cattolica Assicurazioni with the title celebrating in Piazza Affari with a 1% increase. The balance sheet of the Scala company closed with an operating result of 412 million (+ 36.6%), beyond the guidance of 350-375 million, a total collection of 5.7 billion (-18.6%) with a holding in non-life (-2.5%) and -26.1% in life, and a net profit of 36 million (halved compared to last year) “above all due to the impairment on goodwill (-138 million on Società Vera ) “, specifies the Veronese company. Adjusted profit amounted to 192 million, up 85.9% “despite various write-downs on real estate investments, equity investments and stocks and funds”.

The Solvency Ratio improves to 187% “in clear recovery compared to the level of the previous quarter (161%) also thanks to the capital increase subscribed by Generali and despite the repurchase of the shares following the exercise of the withdrawal”. The combined ratio improved by 7.5 percentage points to 86.8%. Finally, the issue of dividends: “Also following the recommendations of Eiopa and Ivass and having not yet completed the capital operations requested by the regulator, Cattolica’s board of directors proposes the provision of profits”. As regards the partnership with Generali, “activities continue in line with the provisions of the agreements”.

According to Equita Sim’s financial analysts, the group’s fourth quarter operating result turned out to be higher than preliminary indications. The surprise compared to Equita’s estimates was led by a better technical result in the business Non-Life, which benefited from the reduction in the frequency of claims occurred in the fourth quarter following the reintroduction of new restrictive measures.

The reported profit, on the other hand, is lower than Equita’s expectations due to higher one-off elements of a mainly non-cash nature. Confirmed the guidance operating profit for 2021 in the range 265-290 million, incorporating the impact of the exit from the perimeter of Lombarda Vita.

Also according to Intesa Sanpaolo, the operating numbers for the fourth quarter are strong and well above estimates, while the net result was affected by provisions, mainly on goodwill. Solvency’s position is in line with forecasts.

“With satisfaction, the board of directors approved a very positive balance sheet for Cattolica, achieved in a year characterized by extraordinary events and marked by the pandemic that has put civil society and the economy as a whole in difficulty”, is the comment of the president. outgoing Paolo Bedoni.

Cattolica’s board of directors received “mostly informal” interests to purchase the treasury shares deriving from the withdrawal (12.2% of the capital) but the board “for now has taken the decision not to sell them and I would be ruled out that this will happen sooner of the shareholders’ meeting of 14 May in which the new board of directors will be appointed “, explained the managing director Carlo Ferraresi, on a conference call with the analysts.

“The new board of directors will decide whether to sell the shares before or after the second tranche of the capital increase, I remember that we have until the end of the year”, added the manager, specifying that all these arguments always depend on prices: “If someone offered a figure extremely high compared to stock market prices, the board should take it into consideration “.

A joke also on the second tranche of the capital increase, equal to 200 million, to be carried out by the end of July: “Ivass asked us to make a capital increase and there is no turning back. We will do what our Supervisory asks us” .

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