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Generali quarterly profits fall 89%

Italy’s largest insurer Generali has reported its first-quarter profits sank 89% to €103.8 million ($187 million) compared with €910.3 million ($1.64 billion) in the corresponding period last year.

General insurance premiums were up 3% to €6.6 billion ($11.9 billion) while life premiums were down 1% to €11.9 billion ($21.5 billion).

The group also reported writedowns of €1.5 billion ($2.7 billion) on equities driven by declines in the sharemarket, and a combined operating ratio of 96.3% – it was 93.1% in the first quarter last year – due to higher motor losses and storm damages.

Chairman Antoine Bernheim says he is pleased Generali has made a profit in a quarter “exposed to the full force of a deepening recession”.