UPDATE 1-Generali will pay 2009 dividend - CEO
* Dividend policy has been to pay out 40-45 percent
* Up to board to take dividend decision
* Shares up 0.3 percent
(Adds detail, shares)
MILAN, Nov 6 (Reuters) - Italy's largest insurance company, Assicurazioni Generali SpA (GASI.MI), will be able to pay a dividend on its 2009 results, its chief executive said.
"The decision will have to be taken by the board of directors. I, as CEO, (say) we are indeed in a position to pay a dividend," Giovanni Perissinotto told analysts on Friday.
The group will also have to take into consideration its policy of strengthening its capital, he said.
The 2008 combination of 0.15 euro cash and a 1-for-25 bonus share on holdings was "a winning pay-out and not very far from the 0.90 euro record paid in 2007", he said.
There was a significant strengthening in capital in the third quarter, he said, adding the company was performing reasonably well in highly challenging markets.
At the end of September, Generali's solvency 1 ratio -- a measure of capital strength -- stood at 132 percent, up from 125 percent at the end of June.
Analysts polled before Thursday's results saw a 0.29-0.48 euro cash dividend with most pointing to 0.40 euro.
Perissinotto also said the capital gain on the sale of its 50 percent stake in Intesa Vita to Intesa Sanpaolo (ISP.MI) would fall to 50-60 million euros, from a 100 million estimate.
On operating trends, finance director Raffaele Agrusti said he confirmed the forecast for year-end non-life combined ratio of under 100 percent.
In the first nine months, the combined ratio was 97.9 percent, better than analysts expected as part of a higher third-quarter result announced on Thursday. [ID:nL5574879]
Morgan Stanley in a research note said third-quarter net profit was in line with its expectations while Generali's higher solvency ratio and shareholders equity was similar to other rises seen in the sector.
Generali shares were up 0.3 percent at 17.47 euros at 1125 GMT, while the European insurance sector .SXIP was up 0.2 percent. (Writing by Nigel Tutt; Editing by Dan Lalor)
