Generali reports double-digit profit growth and improved insurance margins, strengthening confidence in surpassing its long-term financial goals.

Italy’s largest insurer, Generali, announced it expects to exceed its 2027 financial targets after reporting strong double-digit profit growth for the first nine months of the year. The company credited its performance to solid results in its non-life business segment and a notable reduction in natural catastrophe claims, which bolstered its financial resilience.

Generali’s Chief Financial Officer, Cristiano Borean, said that the insurer’s operating profit rose by 10.1% to €5.9 billion, while adjusted net profit grew by 14% to €3.3 billion. The results were largely in line with analysts’ expectations and reflected efficient management of underwriting operations and expenses.

The decline in natural catastrophe claims, totaling €573 million, accounted for just over half of the company’s annual allocation. This provided additional room to reinforce reserves and support long-term financial stability. Borean emphasized that the company’s current momentum gives it greater confidence to exceed its strategic targets ahead of schedule.

Under its 2027 plan, Generali aims for earnings per share growth of 8–10% annually, cumulative dividends exceeding €7 billion, and share buybacks worth at least €1.5 billion. The insurer’s consistent performance positions it favorably to meet these milestones while maintaining robust capital buffers.

The strong quarterly results come amid renewed investor attention following a shift in Generali’s shareholder landscape. State-backed Banca Monte dei Paschi di Siena, supported by Italian business magnates Francesco Gaetano Caltagirone and the Delfin group, gained control of Mediobanca earlier this year—Generali’s largest investor.

Both Caltagirone and Delfin have significant stakes in Generali and previously criticized CEO Philippe Donnet for not accelerating growth. While they have not revealed new plans since their influence increased, the board recently appointed Giulio Terzariol, head of insurance operations, as deputy CEO. Industry observers view Terzariol as a potential internal successor should leadership changes occur.

Generali’s shares rose 1.7% following the results, outperforming European insurance peers. Analysts at JPMorgan described the outcome as solid, noting the company’s strong reserves and balanced underwriting performance.

The insurer’s non-life segment recorded an improved combined ratio—a key profitability metric—of 94.2% at the end of September, compared with 96.3% a year earlier. A ratio below 100 indicates a profit on underwriting, highlighting Generali’s operational strength and effective risk management.

With stable revenue streams and disciplined capital allocation, Generali continues to build on its European leadership position. The company’s focus on sustainable growth, technological innovation, and disciplined expense control remains central to its 2027 vision.

As Generali looks ahead, its ability to maintain steady profit margins and enhance shareholder returns will be key to solidifying its long-term growth trajectory and delivering on its strategic commitments.

Italy has achieved a major financial milestone as DBRS Morningstar upgrades its credit rating to ‘A low,’ citing economic resilience, fiscal discipline, and government stability under Prime Minister Giorgia Meloni’s leadership — marking a proud moment for Europe’s third-largest economy.

Italy has received a strong vote of confidence from global markets as credit rating agency DBRS Morningstar upgraded the country’s long-term sovereign rating from ‘BBB high’ to ‘A low’, highlighting the remarkable progress in strengthening its financial foundations and restoring investor trust.

The move marks Italy’s first rating upgrade since 2017, and comes as a significant validation of the country’s ongoing reforms, resilient economic structure, and the government’s credible approach to fiscal consolidation.

The announcement is being hailed as a clear endorsement of Prime Minister Giorgia Meloni’s economic policies, which have focused on balancing growth with responsibility while modernizing Italy’s financial and industrial sectors.

A Resilient Economy Regaining Momentum

DBRS Morningstar’s upgrade is grounded in several positive developments, including improvements in Italy’s banking system, external accounts, and fiscal management.

The agency noted that “cumulative improvements in Italy’s banking system and external accounts have significantly reduced structural weaknesses and improved its resilience since we last downgraded Italy’s credit rating in January 2017.”

This recognition is particularly significant given the global economic uncertainty and the challenges facing the eurozone. Italy — the third-largest economy in the European Union — has shown remarkable capacity to withstand market pressures, diversify its industrial base, and attract foreign investment.

The nation’s robust banking sector, now more capitalized and better regulated than ever, has also played a critical role in improving credit conditions and supporting small and medium-sized enterprises (SMEs), the lifeblood of Italy’s economy.

In addition, the country’s positive trade balance and stronger external position have bolstered investor confidence and helped stabilize the currency environment.

The upgrade also reflects optimism about Italy’s fiscal consolidation strategy, which aims to stabilize the debt-to-GDP ratio through prudent budgeting and efficient spending.

While public debt remains high — projected to reach 136.2% of GDP in 2025 — DBRS expressed confidence that the government’s disciplined approach will prevent unsustainable debt growth.

The Italian Treasury has forecast that public debt will stabilize after 2026, supported by reforms designed to boost productivity, streamline bureaucracy, and enhance competitiveness.

DBRS acknowledged that despite modest growth forecasts of 0.5% for 2025 and 0.7% for 2026, Italy’s policy consistency and institutional stability make its fiscal path credible.

Economy Minister Giancarlo Giorgetti welcomed the news, stating, “As a result of the constant work carried out over the last three years of government, Italy returns to the top flight with great pride.”

His statement encapsulated the sense of achievement shared by the Italian government and business community, which see the upgrade as both recognition and motivation to continue structural reforms.

Confidence in Leadership and Stability

The agency’s decision also reflects growing confidence in Italy’s political and economic stability under the leadership of Prime Minister Giorgia Meloni. Since taking office, Meloni’s administration has focused on a pragmatic blend of economic nationalism and international cooperation — prioritizing fiscal responsibility, social cohesion, and industrial growth.

DBRS highlighted that “the stability and track record of Italy’s government lend credibility to its medium-term fiscal consolidation plan.” This acknowledgment underscores the growing perception that Italy’s economic policymaking has become more predictable and effective, helping to reduce risk perceptions among investors.

The government’s continued commitment to European cooperation, participation in the EU Recovery and Resilience Facility, and emphasis on digital transformation and green investments are also contributing factors that strengthen Italy’s long-term outlook.

Financial markets reacted positively to the announcement, with analysts noting that the upgrade could lower borrowing costs for Italy and attract more international investment into its bonds and corporate sectors. A stronger rating often translates into increased capital inflows, greater investor confidence, and enhanced economic stability.

Moreover, Italy’s upgraded position may encourage credit agencies like Moody’s and S&P to follow suit in the coming months if fiscal indicators continue to improve. Analysts believe this momentum could further boost Italy’s financial credibility and allow it to play a more influential role within the European Union’s economic framework.

A Turning Point for Italy’s Economic Future

While challenges remain — including high debt levels and moderate growth — Italy’s new rating represents a turning point. It is a recognition that years of reform, resilience, and policy discipline have begun to pay off.

Italy’s success sends a broader message to global markets: that strategic reform, strong leadership, and consistent governance can transform even the most debt-laden economies into engines of stability and opportunity.

As Europe’s economic landscape continues to evolve, Italy’s progress stands as a symbol of renewal, confidence, and pride — signaling that the country is once again ready to lead from the front, grounded in fiscal responsibility and ambitious reform.