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

$58.12B

Dividend Yield2.45%

Average Volume (3M)25.23K

Price to Earnings (P/E)14.4

Beta (1Y)0.40

Revenue Growth0.80%

EPS Growth-3.25%

CountryUS

Employees86,851

SectorFinancial

Sector Strength81

IndustryInsurance - Diversified

Share Statistics

EPS (TTM)0.45

Shares Outstanding3,099,569,800

10 Day Avg. Volume24,600

30 Day Avg. Volume25,231

Financial Highlights & Ratios

PEG Ratio-0.58

Price to Book (P/B)1.72

Price to Sales (P/S)0.00

P/FCF Ratio5.69

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. provides various insurance solutions. The company operates through four segments: Non-Life; Life; Asset Management; and Holding and Other Business. It offers saving and protection insurance products for individuals and family; unit linked products with investment purposes; and motor, motor third-party liability, casualty, accident, health, and commercial and industrial risks insurance products. The company also provides equity and fixed-income funds, and alternative products; and investment advisory, asset management, and financial planning services. It operates in Italy, France, Germany, Austria, Czech Republic, Poland, Hungary, Slovakia, Serbia, Montenegro, Romania, Slovenia, Bulgaria, Croatia, Russia, Spain, Switzerland, the Americas, Southern Europe, and Asia. The company was formerly known as Assicurazioni Generali Austro-Italiche and changed its name to Assicurazioni Generali S.p.A. in 1848. Assicurazioni Generali S.p.A. was founded in 1831 and is headquartered in Trieste, Italy.

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 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
234.19B	7.07B	287.67B	357.05B	344.90B	325.07B
	Total Assets
441.75B	508.61B	519.05B	586.23B	544.71B	514.57B
	Total Debt
19.60B	33.17B	16.48B	16.57B	13.42B	14.18B
	Net Debt
-2.05B	26.10B	9.24B	8.10B	5.52B	7.31B
	Total Liabilities
419.18B	477.33B	500.91B	554.35B	512.92B	484.72B
	Stockholders Equity
19.83B	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

Positive

Last Price18.80

Price Trends

50DMA

17.53

Positive

100DMA

16.48

Positive

200DMA

15.02

Positive

Market Momentum

MACD

0.43

Positive

RSI

59.43

Neutral

STOCH

2.11

Positive

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 18.8 is above the 20-day moving average (MA) of 18.47, above the 50-day MA of 17.53, and above the 200-day MA of 15.02, indicating a bullish trend. The MACD of 0.43 indicates Positive momentum. The RSI at 59.43 is Neutral, neither overbought nor oversold. The STOCH value of 2.11 is Positive, 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 (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HIG	83 Outperform	$36.66B	12.86	18.49%	1.53%	7.55%	14.16%
ACGL	78 Outperform	$35.30B	9.52	18.42%	―	25.29%	-23.19%
PFG	73 Outperform	$17.34B	16.58	9.70%	3.76%	5.84%	-10.64%
ARZGY	71 Outperform	$58.12B	14.36	12.80%	2.45%	0.80%	-3.25%
AEG	70 Neutral	$10.89B	15.36	9.36%	4.25%	-5.03%	―
Sector *	64 Neutral	$12.66B	9.79	7.67%	17015.07%	12.23%	-6.06%
AIG	61 Neutral	$47.27B	18.33	6.13%	1.94%	-44.30%	-33.09%

* Financial Sector Average

Performance Comparison

ARZGY

Assicurazioni Generali

18.80

6.46

52.35%

AEG

Aegon

6.97

0.59

9.25%

AIG

American International Group

82.02

5.63

7.37%

ACGL

Arch Capital Group

91.97

-6.31

-6.42%

HIG

Hartford Financial

129.05

29.50

29.63%

PFG

Principal Financial

77.35

-2.03

-2.56%

Assicurazioni Generali Earnings Call Summary

Earnings Call Date:May 22, 2025

(Q1-2025)

% Change Since: -0.42%|

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.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.