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Financial crisis takes its toll on Generali

Italy’s largest insurer, Generali, has been hard hit by the global financial crisis with a 29% slide in nine-month net profit to €1.67 billion ($3.2 billion) from €2.36 billion ($4.55 billion) last year.

“The rapid deterioration in the third quarter of the financial markets, the increasingly uncertain outlook for the remainder of the year and the as yet unclear situation regarding [tax rules] for financial asset measurement make it difficult to provide reliable full-year guidance,” the insurer said in its results announcement.

Generali’s operating result for the nine months was down 16% to €3.47 billion ($6.7 billion). But despite the worsening financial crisis, total premiums rose by 7% in the period.