Research Update: Genertel SpA Upgraded To 'A+' On Parent Group's Lower Exposure To Italy; Outlook Stable

Assicurazioni Generali SpA has further reduced its group exposure to Italian assets in 2023; we now assess that the share of Italian assets within Generali's general account investments is well below our 25% materiality threshold for applying our sovereign stress test. We also consider that in 2023, Generali reinforced its capital position and its competitive position via organic growth and acquisitions. This leads us to assess Generali's group credit profile at 'a+'. We therefore raised our long-term issuer credit and financial strength ratings on Generali's core subsidiary, Genertel SpA, to 'A+' from 'A' and no longer link our ratings on Genertel to those on Italy. The stable outlook reflects our view that Genertel will remain a core subsidiary of the

...- Assicurazioni Generali SpA has further reduced its group exposure to Italian assets in 2023; we now assess that the share of Italian assets within Generali's general account investments is well below our 25% materiality threshold for applying our sovereign stress test. - We also consider that in 2023, Generali reinforced its capital position and its competitive position via organic growth and acquisitions. This leads us to assess Generali's group credit profile at 'a+'. - We therefore raised our long-term issuer credit and financial strength ratings on Generali's core subsidiary, Genertel SpA, to 'A+' from 'A' and no longer link our ratings on Genertel to those on Italy. - The stable outlook reflects our view that Genertel will remain a core subsidiary of the Generali group and that the parent group will continue to become more profitable and maintain its current level of capitalization and reduced exposure to Italian assets....

Research Update