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Generali first-half net tops 1 billion on non-life growth

MILAN | Thu Aug 1, 2013 3:09am EDT

MILAN (Reuters) - Italian insurer Generali (GASI.MI) reported a 28 percent rise in first-half net profit to 1.08 billion euros ($1.4 billion), thanks to a strong performance in its non-life business, it said on Thursday.

The result, which Generali called its best half-year performance in the past five years, was in line with the average forecast of 1.08 billion in a Reuters poll of five analysts.

Europe's third-largest insurer said its operating result rose 5.3 percent to 2.4 billion euros, driven by a 25 percent increase for its property and casualty business. In the life segment, the operating result fell 7 percent to 1.5 billion euros but premiums grew 2.2 percent.

The group confirmed it expected its 2013 operating result to beat 2012.

Generali's solvency I ratio, a measure of capital strength, stood at 142 percent in mid-July. Taking into account the impact of recent disposals in the United States and Mexico, the ratio would be 147 percent, compared with 145 percent at the end of April.

"Overall, a solid set of results," said one broker. "The strategic refocusing of the company is on track and the solvency position seems in line with expectations."

Mario Greco, formerly at Switzerland's Zurich Insurance ZURZN.VX, took over a year ago from long-standing CEO Giovanni Perissinotto, who was ousted after Mediobanca (MDBI.MI) and other key shareholders expressed disappointment with his tenure.

Greco has pushed through an extensive clean-up of Generali's balance sheet and is seeking 4 billion euros from the sale of non-core businesses to boost capital.

In a conference call with reporters, Greco said more than 50 percent of that target had been achieved, notably through the sale of the U.S. reinsurance business and Mexican assets. However he declined to give an update on the sale of Swiss private bank BSI, which some media reports said has stalled. ($1 = 0.7531 euros)

(Editing by Stephen Jewkes and David Holmes)

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